Commission approves €3 billion Finnish scheme to support companies affected by #Coronavirus outbreak

The European Commission has approved a Finnish scheme to support the Finnish economy in the context of the coronavirus outbreak. The scheme was approved under the state aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020. 

Under the scheme, the public support will take the form of direct grants, equity injections, selective tax advantages and advance payments, as well as repayable advances, State guarantees and loans. The scheme aims at enhancing access to liquidity by those companies, which are most severely affected by the economic impact of the coronavirus outbreak, thus allowing them to continue their activities, start investments and maintain employment.

The scheme will be open to all companies, with the exception of companies active in the primary agricultural, fishery and aquacultural sectors. It will apply to the whole territory of Finland. The Commission found that the scheme notified by Finland is in line with the conditions set out in the Temporary Framework. The Commission therefore concluded that the Finnish 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. Executive Vice President Margrethe Vestager, in charge of competition policy, said: “This €3 billion Finnish scheme will enable Finland to support companies suffering from the economic consequences of the coronavirus outbreak. The public support will take various forms in the value of up to €800,000 per company, including direct grants, equity injections, tax and payment advances and state guarantees. It will ensure that companies can meet their liquidity needs and continue their activities during and after the crisis. We continue to work with member states to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules.”

The full press release is available online. 

Share this article: