Commission approves €38.5 million Czech scheme to support ski resort operators affected by coronavirus outbreak

The European Commission has approved a €38.5 million Czech scheme to support companies active in the ski resort sector that have been adversely affected by the coronavirus outbreak. The measure was approved under the State aid Temporary Framework. The aim of the scheme is to mitigate the sudden liquidity shortages that these companies are facing due to restrictive measures implemented by the Czech government to limit the spread of the virus, notably the mandatory closure of ski resorts in wintertime. The support will take the form of direct grants. The aid amount will depend on (i) the type of equipment used by these companies for their operations (ski lifts, cable cars, etc.) and (ii) their average operational costs of the past two closed accounting periods (for new companies, of the last closed accounting period). The Commission found that the Czech scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid amount will not exceed €1.8 million per company; and (ii) the aid will be granted no later than 30 June 2021. 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 of 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.61808 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.