State aid: Commission approves €114,000 Latvian scheme to support cooperatives active in the forestry sector affected by coronavirus outbreak

The European Commission has approved a €114,000 Latvian scheme to support cooperatives active in the forestry sector affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The public support will take the form of direct grants and will be open to cooperatives providing forest services. The measure aims at ensuring sufficient financial resources for forestry cooperatives that have suffered in May and June 2020 a decrease in turnover of at least 20% compared to the same period in 2019. The measure is expected to support a maximum of three undertakings. The purpose of the scheme is to help those undertakings to continue their activities during and after the coronavirus outbreak. The Commission found that the Latvian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €800,000 per beneficiary and (ii) the scheme will run until 31 December 2020. 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 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 case number SA.58117 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.