On Friday 26 November, the European Commission authorised, under EU state aid rules, a €700 million French scheme to support certain companies that have been particularly affected by the coronavirus pandemic and the restrictive health measures that have been put in place by the French government.
The aid is targeted at those businesses who operate in certain sectors that have been heavily affected by the closures, including catering, events, accommodation as well as travel agencies, sports halls, museums and leisure parks.
Businesses that are also eligible are those whose activity has in fact been significantly impacted by administrative closure measures that affected other enterprises with which they have a business relationship.
The activities carried out must have been prohibited for certain periods from January 2021 and they must have suffered a loss of turnover of 80% compared to the corresponding periods in 2019.
Beneficiaries who are eligible for the scheme will be able to obtain compensation in the form of direct subsidies up to an amount matching 70% of operating losses incurred during the closure periods. The maximum amount of aid is limited to €25 million per beneficiary.
In order to ensure that the aid is distributed proportionally, the scheme includes capping to avoid overcompensation of damages actually suffered. (Original version in French by Lionel Changeur)