Commission approves German direct grant scheme to support companies affected by #Coronavirus outbreak

| March 25, 2020

The European Commission has found a German scheme to support companies affected by the coronavirus outbreak to be in line with EU State aid rules. The scheme was approved under the State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak adopted by the Commission on 19 March 2020.

Germany notified to the Commission a scheme for companies affected by the coronavirus outbreak under the Temporary Framework. The scheme, called “Bundesregelung Kleinbeihilfen 2020”, aims to remedy the difficulties faced by companies and help ensure that the disruptions caused by the coronavirus outbreak do not undermine their viability. The aid takes the form of direct grants, repayable advance or tax and payment advantages.

The Commission found that the scheme is in line with the conditions set out in the Temporary Framework. In particular, aid does not exceed €120,000 per company active in the fishery and aquaculture sector and €100,000 per company active in the primary production of agricultural products. For all other companies affected by the coronavirus outbreak aid does not exceed €800,000 per company.

The Commission concluded that the measure will contribute to managing the economic impact of the coronavirus in Germany. It is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.

On this basis, the Commission approved the measures under EU state aid rules. Executive Vice President Margrethe Vestager, in charge of competition policy, said: “Today, we approved a German scheme that will help companies affected by the coronavirus outbreak via direct grants, repayable advance or tax and payment advantages. With this German scheme, that we have approved today under the new State Aid Temporary Framework, we continue to work with member states to ensure timely support to the economy through these difficult times.”

The full press release is available online.

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