State aid: Commission approves a Luxembourg scheme to support the seed sector affected by coronavirus outbreak

The European Commission has approved a €500,000 Luxembourg scheme to support the seed sector in the context of the coronavirus outbreak. The scheme was approved under the State Aid Temporary Framework. The public support, which will take the form of direct grants, will be open to enterprises active in the processing and commercialisation of seed. The scheme aims at addressing the liquidity needs of the beneficiaries, thus helping them continue their activities during and after the coronavirus outbreak. The Commission found that the Luxembourgish scheme is in line with the conditions of the Temporary Framework. In particular, (i) the aid does not exceed €800,000 per beneficiary as provided by the Temporary Framework; and (ii) the scheme will run until 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 set out in the Temporary Framework. On this basis, the Commission approved the scheme 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.59944 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344; Maria Tsoni – Tel.: +32 229 90526)

State aid: Commission approves modification of several Lithuanian schemes to support certain sectors affected by coronavirus outbreak

The European Commission has found the modification of several existing Lithuanian State aid schemes to support certain sectors affected by the coronavirus outbreak to be in line with the State Aid Temporary Framework. The original schemes were approved by the Commission under the case numbers SA.57514, SA.57529, SA.57823, SA.58856, SA.57008 and SA.57665. Lithuania notified certain modifications to the original schemes, in particular: (i) an extension of the period in relation to which the aid may be granted until 30 June 2021; (ii) the modification of the aid eligibility conditions of the beneficiaries, which will now include small and micro enterprises that were already in difficulty on 31 December 2019, provided that, at the moment of the granting, they are not subject to collective insolvency procedure under national law; and (iii) an increase of the budget for loans for the scheme SA.57823, from EUR 90 million to EUR 135 million. The Commission concluded that the schemes, as modified, remain 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 measures 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 cases number SA.60073, SA.60096, SA.60139 and SA.60266 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.