European Commission approves €600 million Slovak scheme to support its economy in the context of Russia’s war against Ukraine

The European Commission has approved a €600 million Slovak scheme to support its economy in the context of Russia’s war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU’), recognising that the EU economy is experiencing a serious disturbance.

The Slovak measure

Slovakia notified to the Commission, under the Temporary Crisis Framework, a €600 million scheme to support its economy in the context of Russia’s war against Ukraine.

Under this measure, the aid will take the form of direct grants to support companies affected by the severe increases in natural gas and electricity prices.

The measure will be open to all sectors except the financial one.

The Commission found that the Slovak scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the individual aid amount will not exceed 50% of the eligible costs or the maximum aid ceiling of €4 million. For beneficiaries qualifying as energy-intensive businesses, the overall aid per beneficiary will not exceed 80% of the eligible costs or the maximum aid ceiling of €150 million. In addition, the aid will be granted no later than 31 December 2023.

The Commission concluded that the Slovak scheme 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 Crisis Framework.

On this basis, the Commission approved the aid measure under EU State aid rules.