The European Commission adopted, between 21 and 25 May, several national support schemes for companies suffering from the negative effects of the Covid-19 pandemic.
The schemes were authorised under the State Aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April and 8 May 2020.
Italy. On 21 May, the Commission approved a €9 billion Italian ‘umbrella’ scheme to support the Italian economy in the context of the coronavirus outbreak. The Italian Regions and Autonomous Provinces, other territorial bodies as well as the Chambers of Commerce will be able to provide support to companies of all sizes, including self-employed ones.
The scheme will help companies to cover their immediate working capital and investment needs. In addition, the scheme will support research and production of coronavirus-related products and help employees to avoid redundancies in these difficult times.
Austria. On 23 May, the Commission validated an €8 billion Austrian scheme to compensate companies for certain damages suffered as a result of the outbreak. The compensation, in the form of direct grants, can cover a maximum of 75% of fixed costs incurred during a limited period of three months, with a maximum amount of €90 million per group. The Commission considers that the pandemic is an exceptional occurrence as it is an extraordinary, unforeseeable event having a significant economic impact.
Portugal. On 25 May, the Commission authorised two Portuguese aid schemes to safeguard employment in the Azores during the pandemic (€43 million). The two aid schemes are designed to offset the wage costs of firms operating in the Azores which would otherwise lay off staff. The monthly wage subsidy paid to firms eligible for the scheme will be 90% of the guaranteed minimum monthly remuneration under the first aid scheme. Employers shall undertake to maintain the employment of staff members for whom they receive assistance until the end of 2020.
Furthermore, on 25 May, the Commission validated: - €10 million Lithuanian scheme to support cultural and art institutions and organisations; - a Hungarian scheme (€156 million) in the form of equity injections and convertible loans of up to €800,000 (between 140 and 220 companies will benefit from this support); - another Hungarian scheme of €60 million in direct grants to support micro, small and medium-sized companies; - a €30 million Luxembourg scheme to support investments by companies affected by the coronavirus outbreak (direct grants). (Original version in French by Lionel Changeur)