RSS   Newsletter   Contact   Advertise with us

Commission approves €8 billion Austrian scheme to compensate companies

Christian Fernsby ▼ | May 25, 2020
he European Commission has found a €8 billion Austrian scheme to compensate companies for damages related to the coronavirus outbreak to be in line with EU State aid rules.
Austria street
Compensate   Austria street
Under the scheme, undertakings will be entitled to compensation for certain damages suffered as result of the coronavirus outbreak. As notified by Austria, the compensation, in the form of direct grants, can cover a maximum of 75% of fixed costs incurred during a limited period of three months, with a maximum amount of €90 million per group.

Topics: Austria

The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or sectors for damage directly caused by exceptional occurrences.

The Commission considers that the coronavirus outbreak qualifies as such an exceptional occurrence, as it is an extraordinary, unforeseeable event having a significant economic impact. As a result, exceptional interventions by the Member States to compensate for the damages linked to the outbreak are justified.

The Commission found that the Austrian aid scheme will compensate damages that are directly linked to the coronavirus outbreak. It also found that the measure is proportionate, as the envisaged compensation does not exceed what is necessary to make good the damage.

The Commission therefore concluded that the scheme is in line with EU State aid rules.