State aid: Commission approves a €1.5 billion Greek scheme to support micro and small enterprises in 12 regions affected by the coronavirus outbreak

The European Commission has approved a €1.5 billion Greek scheme to support micro and small enterprises active in 12 regions affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The 12 regions concerned are Attica, Central Greece, Crete, Eastern Macedonia and Thrace, Epirus, Ionian Islands, North Aegean, Peloponnese, South Aegean,Thessaly, Western Greece, and Western Macedonia. The public support will take the form of direct grants for working capital as a percentage of the expenses that beneficiaries incurred in 2019. The maximum percentage of the company’s expenses to be subsidised is 50%. The purpose of the scheme is to support micro and small enterprises that are facing a sudden liquidity shortage due to the coronavirus outbreak. The scheme will be open to all micro and small enterprises except those active in (i) the financial sector, (ii) primary production of agricultural products and the fishing and aquaculture sector, (iii) the intellectual property rights licensing contracts for trademarks or signs and commercial know-how, and (iv) offshore companies and legal entities governed by public law. The Commission found that the Greek scheme is in line with the conditions set out in the Temporary Framework. In particular, the total aid received by beneficiaries will not exceed €800,000 per company, as provided 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. 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.58616 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved