The Union has approved a € 100 million business aid scheme for Slovakia

The Union has approved a € 100 million business aid scheme for Slovakia

On Tuesday, the European Commission approved a Slovak program worth 100 million euros to support the uncovered fixed costs of companies affected by the new coronavirus pandemic. The scheme was approved on the basis of a temporary legal framework for state aid. Under the proposed scheme, support will take the form of direct grants. Public support will be open to companies operating in all sectors (with the exception of primary agriculture, fisheries and aquaculture and the financial sectors), which saw a 30% decrease in turnover between March 2020 and June 2021 (compared to the same period in 2019) due to restrictive measures that the Slovak authorities had to take to limit the spread of the new coronavirus. The aid will cover up to 70% of the beneficiaries' fixed costs, which are not covered by their income, and 90% in the case of micro and small companies. The aim of the scheme is to address the liquidity needs of the beneficiaries, thus helping them to continue their activities during and after the outbreak of the new coronavirus pandemic. It is estimated that more than 1,000 companies will benefit from the state aid scheme. The Commission found that the Slovak system complied with the conditions set out in the temporary legal framework established after the outbreak of the pandemic. The Commission has stated that the State aid will not exceed EUR 800 000 per beneficiary and that it will be granted by 30 June 2021 at the latest. The Commission concludes that this scheme is necessary and proportionate to address the serious disturbances in the economy of an EU Member State. On this basis, the Commission approved the proposed measure under Union State aid rules.