The European Commission has found the modification of a previously approved Hungarian scheme to support the Hungarian economy in the context of the coronavirus outbreak to be in line with EU State aid rules, in particular with the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April and 8 May 2020.
The existing scheme was approved on 20 May 2020 under case number SA.57269. Hungary notified the following modifications to this scheme: (i) an increase in the estimated total budget of the scheme, from HUF 57 billion (approximately €156 million) to HUF 103 billion (approximately €288.3 million); and (ii) the extension of the initial scheme to new capital funds (“Hiventures” and “Crisis Funds”).
It is estimated that between 240 and 420 companies will benefit from the modification of the existing scheme. The Commission concluded that the scheme, as modified, remains 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.
More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.57488 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Arianna Podesta – Giulia Astuti –