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European Commission Had Approved The Czech State Aid System

The European Commission (EC) announced on Tuesday that it had approved the Czech state aid system for rent compensation.

European Commission Had Approved The Czech State Aid System
Yazar: Tom Roberts

Yayınlanma: 3 Kasım 2020 23:03

Güncellenme: 4 Kasım 2024 06:42

European Commission Had Approved The Czech State Aid System

The European Commission (EC) announced on Tuesday that it had approved the Czech state aid system for rent compensation in the amount of 110 million euros, which the government will support companies affected by the coronavirus pandemic. The Commission stated that it had approved a Czech government program worth CZK 3 billion (approximately EUR 110.5 million) to support retail and rental companies that had limited or suspended activities as a result of measures imposed in connection with the spread of the new coronavirus pandemic. The scheme was approved on the basis of a temporary legal framework for state aid adopted by the European Commission following the outbreak of a pandemic. State aid, which will take the form of direct grants, will cover 50% of the rent payable for July, August and September. The aim of this scheme is to alleviate the lack of liquidity to which companies providing space leases are exposed due to government quarantine and anti-crisis measures. The Commission found that the system proposed by the Czech government complied with the conditions set out in the temporary legal framework and that the aid granted to one company would not exceed EUR 800 000. This aid scheme is limited in time and will run until 30 June 2021. According to the European Commission, the proposed state aid scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of an EU Member State.
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