State aid: EU Commission approves € 700 million Polish loan and guarantee scheme to support economy in coronavirus outbreak

The European Commission has approved a PLN 3.5 billion (approximately €700 million) Polish aid scheme to support the economy in the context of the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

The new scheme will be co-financed by European Union funds under shared management, notably the European Regional Development Fund and the European Social Fund. Under this scheme, the Polish authorities will be able to grant aid to support Polish companies affected by the coronavirus outbreak by providing liquidity support in the form of guarantees on loans and subsidised interest rates for loans.

The Commission found that the measure is in line with the conditions set out in the Temporary Framework. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “The €700 million Polish scheme approved today will enable public guarantees on loans and loans with subsidised interest rates to support the Polish economy during the coronavirus outbreak.

It will help businesses cover immediate liquidity needs and continue their activities in these difficult times. We continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, in line with EU rules.”

Arianna Podesta – Giulia Astuti – Maria Tsoni –