On Tuesday 7 and Wednesday 8 April the European Commission approved several aid schemes to support the EU economy and businesses in the context of the Covid-19 pandemic.
Most of these schemes were approved under the Temporary Framework for state aid measures adopted by the Commission on 19 March and amended on 3 April.
Denmark. The Commission has approved, under EU state aid rules, a €5.4 billion Danish scheme that compensates companies particularly affected by the Covid-19 outbreak, up to €8 million per company.
Under the scheme, private companies registered on the Danish Central Business Register (CVR) and whose turnover is proven to have decreased by more than 40% as a result of the pandemic between 9 March and 9 June 2020 will be entitled to compensation for the damage suffered.
In particular, they shall be compensated in part or in full for the fixed costs they continue to bear. The Danish authorities provide for several levels of compensation depending on the level of the turnover decline.
Portugal. The Commission has validated a €20 million credit line from Portugal to help businesses in the fishery and aquaculture sector. These are loans with subsidised interest rates to help businesses overcome cash flow difficulties and maintain their activity.
Poland. The aid scheme is worth €700 million and will be co-financed by EU funds under shared management (European Regional Development Fund and the European Social Fund). Polish companies will be able to receive liquidity support in the form of loan guarantees and subsidised interest rates for loans.
Bulgaria. €255 million guarantee scheme (from the development bank AD) on existing or new loans to support businesses.
Hungary. The €140 million aid scheme is designed to support the Hungarian economy. Public support (direct grants) will be available to medium and large enterprises active in certain sectors defined by Hungary.
The scheme will help companies to cover their immediate working capital or investment needs.
Greece. The Commission has authorised a Greek scheme of repayable advances worth an estimated €1 billion to support businesses affected by the coronavirus pandemic.
The scheme is open to companies active in all sectors and applies to the whole territory of Greece (companies experiencing temporary financial difficulties resulting in a significant reduction of their activity).
The repayable advances will be paid directly to the companies by the Independent Authority for Public Revenue, without going through the banks. Support under this scheme will be granted until 30 June 2020. (Original version in French by Lionel Changeur)