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Commission approves €12 million Lithuanian scheme to support companies active in poultry production and processing sectors affected by coronavirus outbreak

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The European Commission has approved a €12 million Lithuanian scheme to support companies active in the poultry production and processing sectors that have been particularly affected by the coronavirus outbreak. The scheme was approved under the state aid Temporary Framework. The public support, which will take the form of direct grants, will be open to poultry producers and to poultry processing companies.

The aid aims at ensuring sufficient working capital for those primary producers that suffered losses of at least 5% in total average income in October 2020 compared to October 2017-2019 and processing companies that suffered losses of at least 5% in total average income from July to September 2020, compared to the same period in years 2017-2019. The purpose of the scheme is to help the beneficiaries address their liquidity needs and continue their activities during and after the outbreak.

The measure is expected to support more than 1,000 enterprises. The Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €100,000 per company active in the primary agricultural production sector or €800,000 per company active in the processing of agricultural products and (ii) the scheme will run until 31 December 2020. The Commission concluded that the measure 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. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.58856 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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Italy reports 26,323 new coronavirus cases, 686 deaths

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Italy reported 686 COVID-19-related deaths on Saturday (28 November), against 827 the day before, and 26,323 new infections, down from 28,352 on Friday (27 November), the health ministry said, writes .

There were 225,940 swabs carried out in the past day, compared with a previous 222,803.

Italy was the first Western country to be hit by the virus and has seen 54,363 COVID-19 fatalities since its outbreak emerged in February, the second highest toll in Europe after Britain. It has also registered 1.564 million cases.

While Italy’s daily death tolls have been amongst the highest in Europe over recent days, the rise in hospital admissions and intensive care occupancy has slowed, suggesting the latest wave of infections was receding.

The health ministry said on Friday it would ease anti-COVID-19 restrictions in five regions as of 29 November, including in the country’s richest and most populous region, Lombardy.

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German minister says partial lockdown could last until Spring 2021

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Germany’s partial lockdown measures could be extended until early spring if infections are not brought under control, Economy Minister Peter Altmaier said in a newspaper interview published on Saturday (28 November), writes Caroline Copley.

Altmaier told Die Welt it was not possible to give the all-clear while there were incidences of more than 50 infections per 100,000 inhabitants in large parts of Germany.

“We have three to four long winter months ahead of us,” he was quoted as saying. “It is possible that the restrictions will remain in place in the first months of 2021.”

Chancellor Angela Merkel agreed with leaders of Germany’s 16 federal states on Wednesday to extend and tighten measures against the coronavirus until at least 20 December.

Germany imposed a “lockdown light” in early November, which closed bars and restaurants but allowed schools and shops to stay open. The measures have stopped the exponential growth of cases but infections have stabilised at a high level.

There were 21,695 new confirmed coronavirus cases in Germany, data from the Robert Koch Institute (RKI) for infectious diseases showed on Saturday, bringing total cases since the pandemic began to 1,028,089.

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Commission approves German scheme to compensate accommodation providers in the field of child and youth education for damages suffered due to the coronavirus outbreak

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The European Commission approved, under EU state aid rules, a German scheme to compensate accommodation providers for child and youth education for the loss of revenue caused by the coronavirus outbreak. The public support will take the form of direct grants. The scheme will compensate up to 60% of the loss of revenues incurred by eligible beneficiaries in the period between the beginning of the lockdown (which started on different dates across the regional states) and 31 July 2020 when their accommodation facilities had to be closed due to the restrictive measures implemented in Germany.

When calculating the loss of revenue, any reductions in costs resulting from income generated during the lockdown and any possible financial aid granted or actually paid out by the state (and in particular granted under scheme SA.58464) or third parties to cope with the consequences of the coronavirus outbreak will be deducted. At the central government level, facilities eligible to apply will have at their disposal a budget of up to €75 million.

However, these funds are not earmarked exclusively for this scheme. In addition, regional authorities (at Länder or local level) may also make use of this scheme from the local budgets. In any event, the scheme ensures that the same eligible costs cannot be compensated twice by different administrative levels. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union, which enables the Commission to approve state aid measures granted by member states to compensate specific companies or specific sectors for the damages caused by exceptional occurrences, such as the coronavirus outbreak.

The Commission found that the German scheme will compensate damages that are directly linked to the coronavirus outbreak. It also found that the measure is proportionate, as the envisaged compensation does not exceed what is necessary to make good the damages. The Commission therefore concluded that the scheme is in line with EU state aid rules.

More information on actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.59228 in the state aid register on the Commission's competition website.

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