European Commission approves Greece's 1 bln euro economy plan during coronavirus crisis
- Written by E.Tsiliopoulos
The European Commission has approved a one-billion-euro aid scheme proposed by Greece to support companies affected by the coronavirus outbreak, it said on Tuesday evening.
The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.
Commenting on it, Commission Executive Vice-President Margrethe Vestager said, "This 1-bln-euro Greek repayable advances scheme will help to ensure there is sufficient liquidity in the Greek economy. It ensures that the companies which are most impacted by the coronavirus outbreak will continue their economic activity during and after the crisis. The European Commission will continue to work closely with the member states to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules."
Greece notified to the Commission a repayable advances scheme amounting to an estimated 1 bln euros under the Temporary Framework to support companies affected by the coronavirus outbreak.
The scheme is open to companies active in all sectors and applies to the whole territory of Greece. It is targeted at companies having temporary financial difficulties due to the coronavirus outbreak, as demonstrated by a significant reduction of their activity. The scheme will help to ensure that liquidity remains available in the market, to counter the damage inflicted by the outbreak and to preserve the continuity of economic activity during and after the outbreak.
The repayable advances will be disbursed by the Independent Authority for Public Revenue (AADE) directly to the companies, without the intermediation of banks. Support under this scheme will be granted until 30 June 2020.
The Commission found that the Greek measure is in line with the conditions set out in the Temporary Framework. In particular: (i) the repayable advances scheme is confined only to solvent enterprises, (ii) the repayable advances will be granted until June 2020, (iii) is proportionate to remedy the consequences of the serious disturbance caused by the coronavirus outbreak, and (iv) the aid amounts do not exceed the levels foreseen by the Temporary Framework.
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.
