The European Commission has approved a €100 million Greek scheme to support companies affected by the coronavirus pandemic. The scheme was approved under the State Aid Temporary Framework. Under the scheme, the aid will take the form of direct grants. The measure will be open to all companies which have started their activity before 31 December 2021 and which are operating in one of the following sectors, which have been severely impacted by the emergency measures necessary to limit the spread of the virus: event catering, beverage serving, event organisation, culture and education, fitness facilities and other amusement and recreation activities.
The scheme is aimed at addressing the liquidity needs of these companies and helping them continue their activities during and after the pandemic. In order to be eligible, companies must either (i) have suffered a decline in turnover of at least 50% in 2020, compared to 2019; (ii) have had no revenues in 2019; or (iii) have started their activity in 2020 or in 2021. The direct grant will not exceed 8% of the company's revenues in 2019. For companies that had no revenues or no activity in 2019, the direct grant will not exceed 8% of the company's revenues in an alternative year. In all cases, the aid will not exceed a maximum amount of €400,000 per company.
The aid must be used to cover short-term expenses incurred within the period between 1 January 2022 and 30 September 2022, with a maximum aid amount equal to 70% of such expenses. The Commission found that the Greek measure is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €2.3m per company; and (ii) will be granted before 30 June 2022.
The Commission concluded that the Greek 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. On this basis, the Commission approved the measures 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.101934 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.
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