The European Commission authorised Denmark on Friday 20 November to set up a fund with a target size of €1.34 billion to recapitalise large companies affected by the coronavirus pandemic. The scheme was approved under the State Aid Temporary Framework.
The scheme ensures that the State is sufficiently remunerated for the risks taxpayers assume and that there are incentives for the State to exit as soon as possible, explained Margrethe Vestager, Executive Vice-President for Competition Policy.
The aid will take the form of recapitalisations through the acquisition of shares issued in private companies. Large companies that have had to face significant revenue declines in 2020 will be eligible.
Austria. Also on Friday, the Commission validated an Austrian aid scheme (Fixkostenzuschuss Phase II) to support the uncovered fixed costs of companies affected by the pandemic.
Under the notified scheme, Austria intends to provide economic aid to all enterprises, self-employed persons, and associations in order to maintain their solvency and to overcome liquidity shortages. The measure has an estimated total budget of €12 billion (direct subsidies).
The Commission has already approved nine Austrian state aid schemes to support companies facing economic difficulties due to the coronavirus. (Original version in French by Lionel Changeur)