On Friday 28 May, the European Commission approved a German aid scheme worth €10 billion to compensate companies for damages related to the coronavirus pandemic.
Companies in all sectors will be entitled to compensation for certain damages suffered due to the full closure of their activities. The compensation period will depend on whether restrictions are in place between 16 March 2020 and 31 December 2021. Compensation, in the form of direct grants, can cover up to 100% of the actual damage incurred by the beneficiaries during the eligible period and can only be granted after the damage has occurred.
The Commission assessed the measure under the Treaty on the Functioning of the European Union (Article 107(2)(b)), which permits State aid measures to compensate specific companies or sectors for damage directly caused by exceptional occurrences.
Since the Covid-19 pandemic was considered to be an extraordinary event, the Commission concluded that the scheme was in line with EU rules. (Original version in French by Lionel Changeur)