European Commission approves €115 million Polish scheme to support economy in coronavirus outbreak
The European Commission has approved a PLN 527 million (approximately €115 million) Polish scheme to support the Polish economy in the context of the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €115 million scheme will allow Poland to relieve companies from part of the interests they have to pay on loans, thus alleviating their financial burden in the current crisis. This will help businesses continue their activities in these difficult times. We continue working closely with Member States to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules.”
The Polish support measures
Poland notified to the Commission under the Temporary Framework a PLN 527 million (approximately €115 million) scheme to support companies affected by the coronavirus outbreak.
The public support, in the form of direct grants, is intended to partially cover interests on loans, which should normally be borne by the borrower.
The scheme will be open to micro, small and medium-sized enterprises (SMEs) and large companies facing difficulties as a result of the economic impact of the coronavirus outbreak.
The aim of the scheme is to help businesses to cover their immediate capital needs, thus ensuring the continuation of their activities.
The Commission found that Polish scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the support per company will not exceed €800 000 per company as foreseen by the Temporary Framework, and (ii) the aid will not be granted to undertakings that were already in difficulty on 31 December 2019.
The Commission therefore concluded the Polish 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 measures under EU State aid rules.