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State aid: Commission clears Czech aid scheme of €126.7 million to support operators offering hosting services affected by #Coronavirus pandemic

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The European Commission has cleared a €126.7 million (CZK 3.31 billion) Czech aid scheme aimed at supporting operators providing hosting services, forced to close their doors due to restrictive measures the Czech authorities had to take to limit the spread of the coronavirus. This measure was authorized under the temporary state aid framework.

Public support will be granted through direct subsidies in the form of a fixed amount per room and per day, for the entire period during which the accommodation was closed, ie from 14 March to 24 May. The measure has aim to alleviate the sudden cash shortages that beneficiaries face as a result of the pandemic. The Commission considered that the Czech measure complied with the conditions set out in the temporary framework.

In particular, i) the support will not exceed €800,000 per company and ii) the aid can only be granted until 31 December 2020. The Commission concluded that the measure was necessary, appropriate and proportionate to remedy a disruption serious impact on the economy of a member state, in accordance with Article 107 (3) (b) TFEU and the conditions of the temporary framework.

On this basis, the Commission cleared the measure under EU state aid rules. More information on the temporary framework and other measures 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 case number SA.58398 in the State Aid Register on the Commission competition website once any confidentiality issues have been resolved.

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