On Tuesday 31 March the European Commission authorised a scheme introduced by France to defer the payment by airlines of certain aeronautical taxes. This scheme aims to partially compensate airlines for the damage suffered by them as a result of the coronavirus crisis in the sector by temporarily reducing the pressure on their cash flow.
Margrethe Vestager, Executive Vice-President in charge of Competition Policy, said that this was “the first State Aid measure notified to us by a Member State aiming to mitigate damages to the airline sector”.
The scheme is aimed at airlines licenced to operate in France and will allow them to defer the payment of certain taxes which should, in principle, be paid between March and December 2020 until after 1 January 2021 and to pay these taxes over a period of up to 24 months.
The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the EU, which allows the Commission to authorise State Aid granted to compensate for damage caused directly to certain companies or sectors as a result of exceptional occurrences. The Commission considers that the coronavirus outbreak constitutes an exceptional occurrence.
In addition, on 30 and 31 March the Commission authorised several State Aid schemes to support businesses affected by the coronavirus crisis. The schemes were authorised under the Temporary Framework for State Aid measures to support the economy affected by the COVID-19 outbreak, adopted by the Commission on 19 March 2020.
The Commission has thus validated Estonia's arrangements. These are two aid schemes aimed at supporting businesses affected by the crisis.
The former will be accessible to all companies, subject to certain exceptions defined by Estonia (for example excluding certain activities or companies active in sectors such as agriculture, tobacco, cloning and genetic modification).
The second will benefit companies in all sectors and throughout Estonia.
Under these two schemes, with an estimated total budget of 1.75 billion euros, the aid will either provide public guarantees on new or existing loans or grant loans on favourable terms.
The objective of these schemes is to help companies cover their immediate working capital or investment needs.
The Commission concluded that the measures were 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 and the conditions laid down in the Temporary Framework.
Ireland. The Commission has approved an Irish 200 million euros scheme to support businesses affected by the coronavirus outbreak. This aid, in the form of repayable advances, will be accessible to companies that experience or expect to experience a decline in turnover of at least 15% compared to their pre-crisis revenues. The scheme applies to undertakings in Ireland employing 10 or more full time employees in certain manufacturing sectors and/or internationally traded sectors, with a turnover of less than 500 million euros.
The Commission found that the scheme notified by Ireland complied with the conditions laid down in the Temporary Framework. Thus, the maximum amount of aid does not exceed 800 000 euros per undertaking.
Denmark. A 130 million euros liquidity guarantee scheme is foreseen for certain categories of SMEs affected by the crisis. SMEs will be eligible for this aid, which will take the form of State guarantees on loans and credits, if their exports account for at least 10% of their yearly revenue, to the extent they experience or expect to experience a decline in revenue of at least 30% compared to their revenue before the coronavirus outbreak in Denmark. (Original version in French by Lionel Changeur)