On Tuesday 28 and Wednesday 29 April the European Commission authorised several state aid schemes to support companies affected by the Covid-19 pandemic, including the French group Renault. The measures were approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.
France. The Commission has approved a €5 billion loan guarantee in favour of the Renault group to mitigate the economic impact of coronavirus.
The Executive Vice President in charge of Competition Policy, Margrethe Vestager, noted that Renault is committed to research, development and production of the next generation of electric vehicles, "the rollout of which is essential for meeting the EU's climate goals".
France has submitted an individual notification because the guarantee provides greater loan coverage (90%) than under the general French guarantee scheme approved by the Commission on 21 March (70% loan coverage). The measure in favour of Renault is nevertheless in line with the conditions laid down in the Temporary Framework, the Commission points out.
Hungary. On 29 April, the Commission validated three Hungarian support measures with a budget of around €900 million to help businesses affected by the pandemic. Official support will take the form of direct grants, guarantees on loans, and subsidised interest rates for loans. The measures will benefit small and medium-sized enterprises (SMEs) and large companies facing economic difficulties and liquidity shortages. Up to 5,000 companies could benefit.
In addition, on 28 April the Commission approved a €1.55 billion Hungarian scheme to support businesses affected by the pandemic (loan guarantees).
Germany. The go-ahead has been given to a German "umbrella" scheme supporting: - research and development (R&D) activities relating to coronavirus; - investments into testing and upscaling infrastructures that contribute to developing coronavirus relevant medicinal products; - investments into production facilities for medicinal products needed to respond to the outbreak. The aim of the scheme, entitled 'Bundesregelung Forschungs-, Entwicklungs- und Investitionsbeihilfen' (Federal Research, Development and Investment aid scheme), aims to enhance and accelerate both the development and the production of products directly relevant to the coronavirus outbreak. These include medicinal products such as vaccines, hospital and medical equipment (including ventilators), and protective clothing and equipment. The public support will take the form of direct grants, repayable advances and tax advantages. Guarantees to cover losses may also be granted, either in addition to a direct grant, tax advantage or repayable advance, or as an independent aid measure.
Estonia. Following the approval of two Estonian schemes on 30 March, Estonia notified the Commission of two additional state aid schemes to support businesses affected by the pandemic. They will be financed from the estimated budget of €1.75 billion established for the previously approved schemes. (Original version in French by Lionel Changeur)