State aid: Commission approves €300 million Luxembourg scheme to support companies affected by coronavirus outbreak
The European Commission has found Luxembourg's €300 million scheme to support companies affected by the coronavirus outbreak to be in line with EU State aid rules. The scheme was approved under the State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak adopted by the Commission on 19 March 2020.
Executive Vice President Margrethe Vestager, in charge of competition policy, said: “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.”
The Luxembourg support measures
Luxembourg notified to the Commission a scheme for companies affected by the coronavirus outbreakunder the Temporary Framework. The measure has an estimated budget of €300 million.
The scheme aims at supporting companies, as well as liberal professions, affected by the economic impact of the coronavirus outbreak. 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 outbreak.
The Commission found that the scheme notified by Luxembourg is 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.