Commission approves €200 million Irish scheme to support the economy in #Coronavirus outbreak

The European Commission has found a €200 million Irish 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.

The support, in the form of repayable advances, will be accessible to companies that experience or expect to experience a decline in turnover of at least 15% compared to their revenue before the coronavirus outbreak in Ireland. The scheme applies to undertakings in Ireland employing 10 or more full time employees in certain manufacturing sectors and/or internationally traded sectors, with a turnover of less than €500 million per year.

The estimated budget of the scheme amounts to €200m. The Commission concluded that the Irish measure will contribute to managing the economic impact of the coronavirus in Ireland. 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: “With this €200m Irish scheme, approved 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. This measure will, in the form of repayable advances, help companies affected by the coronavirus outbreak to weather this crisis and bounce back strongly afterwards.” The full press release is available online.

Share this article: