State aid: Commission approves Danish schemes to preserve employment and support companies affected by coronavirus outbreak

The European Commission has approved a €107 million (DKK 800 million) Danish scheme, as well as the prolongation of a previously approved Danish measure, to help companies affected by the coronavirus outbreak pay the salaries of their workers by providing support ranging between 75% to 90% of the salary costs. The schemes were approved under the State aid Temporary Framework. The first scheme, with a budget of approximately €107 million (DKK 800 million), will be open to companies that were affected by local restrictions imposed in certain municipalities in order to contain the spread of a specific variant of coronavirus that originated from mink. The second decision prolongs until 30 June 2021 a scheme previously approved by the Commission in October 2020 under case number SA.58515, and adjusts the eligibility conditions to take into account the developments of the pandemic situation in Denmark. There is no change in the original budget of approximately €41 million (DKK 307 million). The aid scheme is open to companies that were affected by the restrictive measures put in place by the government to limit the spread of the coronavirus. The aim of both schemes is to help the beneficiaries address their liquidity needs and pay the salaries of their workers, in order to avoid lay-offs and allow them to continue their activities. The Commission concluded that the measures are 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 versions of the decisions will be made available under the case numbers SA.59414 and SA.59543 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.