Commission approves €1.2 billion Czech scheme to support self-employed and partners in small limited liability companies affected by coronavirus outbreak

The European Commission has approved a €1.2 billion Czech scheme (‘compensation bonus') to support self-employed and partners in small limited liability companies affected by the coronavirus outbreak. The scheme was approved under the state aid Temporary Framework. Under the scheme, the public support will take the form of direct grants. The aim of the scheme is to mitigate the adverse effects of the coronavirus outbreak on the liquidity of the eligible small businesses for the periods when they have been – or will be – prevented, completely or partially, from carrying out business activities.

The scheme is expected to support more than 1 million self-employed and partners in small limited liability companies. The Commission found that the Czech scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the support will not exceed €225,000 per company active in the primary production of agricultural products, €270,000 per company active in the fishery and aquaculture sector, and €1.8 million per company active in all other sectors; and (ii) the aid will be granted before 31 December 2021. 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 measure 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.61358 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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