The European Commission has approved Luxembourg's €300 million scheme to support companies affected by the COVID-19 (coronavirus) outbreak.
In a statement released earlier today, the European Commission confirmed that it had found the €300 million support scheme to be in line with European Union (EU) State aid rules. The scheme was thus approved under the State aid Temporary Framework to support the economy in the context of the coronavirus outbreak adopted by the Commission on 19 March 2020.
Executive Vice President Margrethe Vestager, who is in charge of competition policy, commented: “With this €300 million scheme, Luxembourg will help companies and liberal professions affected by the coronavirus outbreak cover their operating costs and weather the crisis. We have approved this measure under the new State aid Temporary Framework in just a few days, and will continue to work with Member States to ensure timely support to the economy through these difficult times”.
Indeed, Luxembourg had notified the European Commission of a scheme for companies affected by the coronavirus outbreak under the Temporary Framework, a measure adopted by the Commission to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the coronavirus outbreak. The measure proposed by Luxembourg has an estimated budget of €300 million and aims at supporting companies, as well as liberal professions, affected by the economic impact of the current crisis. The support takes the form of a repayable advance granted in one or more instalments to allow beneficiaries to face their operating costs in the difficult situation caused by the coronavirus pandemic.
The European Commission found the scheme to be in line with the conditions set out in the Temporary Framework. In particular, it allows for repayable advances of up to €500,000 per company. The Commission concluded that the measure will contribute to managing the economic impact of the coronavirus outbreak in Luxembourg. It 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.