The European Commission has approved a €59 million Flemish scheme to support companies affected by the coronavirus pandemic and the restrictions put in place to limit the spread of the virus. The scheme was approved under the State Aid Temporary Framework. The measure will be open to companies active in certain sectors such as events, tourism, culture, sports and gambling. Under the scheme, the public support will take the form of direct grants. In order to be eligible, companies must either (i) have had to remain closed in the first quarter of 2022; or (ii) have suffered a decline in turnover of at least 30% in the first quarter 2022 and in particular of at least 60% when operating restrictions were in place, compared to the same periods in 2019.
The aid amount for companies that had to remain closed will be calculated on a pro rata basis, depending on the duration of the compulsory closure period. On the other hand, companies that could remain open but whose activities were affected by the restrictions are entitled to receive an aid amount equal to 10% of the turnover registered in the relevant reference period in 2019. The maximum aid amount per beneficiary will be calculated based on its size. The Commission found that the Belgian scheme is in line with the conditions set out in the Temporary Framework.
In particular, the aid (i) will not exceed €2.3 million per company; and (ii) will be granted no later than 30 June 2022. 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.101863 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.
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