The European Commission approved, between 3 and 6 April, several aid schemes to support the economy in the context of the coronavirus pandemic.
The schemes were approved under the Temporary Framework for State Aid measures adopted by the Commission on 19 March, as amended on 3 April (https://bit.ly/2JNBEXr ).
So far, the Commission has adopted a total of 41 national measures in 16 countries under the Temporary Framework for State Aid.
United Kingdom. The Commission has approved a £50 billion (around €57 billion) ‘umbrella’ UK scheme to support small and medium-sized enterprises (SMEs) and large corporates in the UK affected by the coronavirus outbreak. The measure allows aid to be granted by UK authorities at all levels, including central government, devolved governments, local authorities and other bodies administering schemes involving State resources channelled through their own budgets.
Poland. The Commission validated, on 3 April, a Polish guarantee scheme on existing or new loans to support companies affected by the coronavirus outbreak. The scheme will enable the provision of public guarantees amounting up to €22 billion. The support consists in the provision by the Polish National Development Bank, Bank Gospodarstwa Krajowego, of public guarantees on investment loans and working capital loans. The scheme, which will be accessible by medium and large Polish companies active in all sectors, aims at limiting the risk associated with issuing loans to those companies that are most severely affected by the economic impact of the current crisis. It will help businesses cover their immediate working capital or investment needs and ensure that they have sufficient liquidity to continue their activities.
Portugal. On 4 April, the Commission authorised two Portuguese State Aid schemes to support the economy to the tune of €13 billion. The country will provide direct grants and state guarantees on loans to help SMEs and large companies to cover their immediate working capital or investment needs to help them continue to operate in these difficult times.
Greece. On 3 April, the Commission authorised a €2 billion Greek aid scheme to support the Greek economy. The measure will be implemented through the issuance of guarantees by the Hellenic Development Bank (HDB) to financial intermediaries. The measure will partially guarantee eligible working capital loans originated by financial intermediaries. The scheme is open to all Greek undertakings with the exception of financial intermediaries, such as banks, undertakings active in aquaculture, in agriculture and in sectors non-eligible by the European Regional Development Fund. It enables the granting of guarantees on loans to help businesses cover their immediate working capital needs.
Netherlands. The Netherlands notified to the Commission a €23 million scheme to support Dutch providers of social support services, health care and youth care in offering services at home during the coronavirus pandemic. The measure, which was validated on 3 April, aims at avoiding that social support, health care and youth care providers are confronted with liquidity problems due to a significant increase in demand of services at home, requiring investments in e-health applications, without a corresponding increase in financial support. (Original version in French by Lionel Changeur)