The European Commission has approved a €79 million (approximately BGN 156m) Bulgarian scheme to support micro, small, and medium enterprises affected by the coronavirus outbreak. The scheme was approved under the state aid Temporary Framework. The scheme, which will be co-financed by the European Regional Development Fund, will be accessible to enterprises active in certain sectors and meeting certain requirements defined by Bulgaria, which have had their activities suspended or limited by governmental restrictive measures to limit the spread of the virus. The amount of grant each beneficiary may receive will be calculated by comparing its turnover (excluding VAT) during the affected period with the same period of the previous year (or the turnover for October 2020, for beneficiaries opened after 1 January 2020).

The grant will amount to either 10% or 20% of that turnover, depending on the beneficiary's sector of activity, up to a maximum of BGN 150 000 (approximately €76,694). The support will help the beneficiaries to cover part of their operating costs and support activities necessary to overcome the shortage of funds or lack of liquidity resulting from the coronavirus outbreak. The Commission found that the Bulgarian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €800,000 per company; and (ii) aid under the scheme can be granted until 30 June 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.60454 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

On 14 January, the Commission published a set of strategic recommendations to 14 newly created research and innovation (R&I) centres, co-funded by the EU Cohesion policy in Bulgaria. The recommendations aim at improving the management and helping the centres reach financial sustainability. They were elaborated by a team of internationally renowned experts during 1.5-year-long fieldwork, coordinated by the Joint Research Centre, as well as through exchanges with peers from Spain, Lithuania and Czechia.

They will support the Bulgarian authorities and researchers in strengthening the country's R&I ecosystem, building up capacity for transfer and dissemination of knowledge, and strengthening the cooperation between research institutions and businesses in areas like green and digital transitions as well as in advanced medicine. Cohesion and Reforms Commissioner Elisa Ferreira (pictured) said: “Thanks to EU support, these Centres will provide scientific infrastructure and equipment, making them attractive for young Bulgarian researchers. I urge all actors involved to make use of the experts' work, laying the ground for an efficient and modern research and innovation system.”

Innovation, Research, Culture, Education and Youth Commissioner Mariya Gabriel said: “The EU's investment in the 14 Centres of Competence and Centres of Excellence has a great potential for transformation of the country's economy and its integration in Global Value Chains. I am confident that the findings of the JRC report will be well received by the Centres, and that the government, academia and industry stakeholders will take action to promptly implement its recommendations.”

The initiative has been launched in 2019 and will be extended to other European countries. The Commission is also assisting Member States and regions in designing and implementing their smart specialisation strategies and through the smart specialisation platform. The EU is currently investing €160 million in the centres, in the framework of the 2014-2020 Bulgarian ‘Science and Education for Smart Growth' programme. In 2021-2027 Bulgaria will receive more than €10 billion under Cohesion policy, with a substantial part dedicated to supporting innovation and competitiveness and green and digital transitions.

The European Commission has approved a BGN 78.2 million (approximately €40m Bulgarian scheme to support small enterprises affected by the coronavirus outbreak. The scheme was approved under the state aid Temporary Framework. The public support will take the form of direct grant of BGN 50,000 (approximately €25,565) per beneficiary, to cover part of their operating costs. The scheme, which will be co-financed by the European Regional Development Fund, will be accessible to small enterprises active in certain sectors and meeting certain requirements defined by Bulgaria, with an annual turnover of at least BGN 500,000 (approximately €250,000) in 2019, which experienced a decrease in turnover linked the coronavirus outbreak of at least 20% over three months since February 2020, compared to the same three months in 2019.

The aim of the measure is to help beneficiaries overcome the economic consequences of the coronavirus outbreak and maintain employment. The Commission found that the Bulgarian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed the ceilings per company set out in the Temporary Framework; and (ii) aid under the scheme can be granted until 30 June 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.59704 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.