The European Commission found on Monday 30 March that the €1.2 billion French scheme to support small and micro-enterprises as well as self-employed people affected by the economic repercussions of the coronavirus epidemic to be in line with EU State Aid rules.
The scheme, called the 'Fonds de solidarité', was authorised 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.
France notified to the Commission under the Temporary Framework a scheme in favour of small and micro-enterprises as well as self-employed people affected by the coronavirus outbreak. The measure has an estimated budget of €1.2 billion.
The support takes the form of direct grants to allow beneficiaries to face their operating costs in the difficult situation caused by the coronavirus pandemic.
Beneficiaries are companies with a maximum of 10 employees and a yearly turnover not exceeding €1 million. Companies are eligible when their business was closed by administrative decision as a result of the coronavirus outbreak, or when their monthly turnover in March 2020 dropped by 70% compared to their turnover in the same period last year.
The Commission found that the scheme allows for direct grants of up to €3,500. It therefore concluded that the measure will contribute to managing the economic impact of the pandemic in France. It is “necessary, appropriate and proportionate to remedy a serious disturbance” in the economy of a Member State, in accordance with Article 107(3)(b) of the Treaty, the Commission concludes. (Original version in French by Lionel Changeur)