Commission approves Danish guarantee scheme for SMEs affected by #Coronavirus outbreak

The European Commission has found a DKK 1 billion (approx. €130 million) Danish guarantee scheme for small and medium-sized enterprises (SMEs) affected by coronavirus outbreak to be in line with EU State aid rules. 

The schemes were approved under the State Aid Temporary Framework to support the economy in the context of the coronavirus outbreak adopted by the Commission on 19 March 2020. The Commission approved the Danish scheme within 48 hours from the entry into force of the Framework. The scheme aims at limiting the risks associated with issuing operating loans to those companies that are most severely affected by the economic impact of the coronavirus outbreak.

The objective of the measure is to ensure these companies can continue their activities faced with the difficult situation caused by the coronavirus. The Commission concluded that that the Danish guarantee scheme for SMEs will contribute to managing the economic impact of the coronavirus in Denmark. The measures are 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: "SMEs are the backbone of our economy. We need to make sure that they can overcome the extremely difficult situation triggered by the coronavirus outbreak. The Danish guarantee scheme for SMEs is an important contribution to reaching this objective. Today, we have approved this measure under the new state aid Temporary Framework, within less than 48 hours from its adoption. We continue working with member states to ensure timely, coordinated and effective action.”

The full press release is available online.

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