State aid: EU Commission approves €110 million Lithuanian guarantee scheme to support economy in coronavirus outbreak

The European Commission has approved a €110 million Lithuanian aid scheme to support the Lithuanian 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 support under the Lithuanian scheme will be open to small and medium-sized enterprises (SMEs) and large companies facing difficulties as a result of the economic impact of the coronavirus outbreak. The aim of the scheme is to help businesses to cover their immediate working capital or investment needs, thus ensuring the continuation of their activities.

The Commission found that the Lithuanian 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 measures under EU State aid rules.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €110 million Lithuanian scheme we approved today will enable public guarantees on loans to support Lithuania’s economy during the coronavirus outbreak. It will help businesses cover immediate working capital needs and continue their activities during and after the pandemic.

Putting in place the necessary national support measures in a timely, coordinated and effective way, in line with EU rules, is of paramount importance in these challenging days.”

Arianna Podesta – Giulia Astuti – Maria Tsoni –