State aid: Commission approves €13 million Polish scheme to support companies active in the wood sector affected by coronavirus outbreak

The European Commission has approved an approximately €13 million (PLN 60 million) Polish scheme to support companies active in the wood sector affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The support, which will take the form of debt cancellation, will be open to companies of all sizes. The aim of the scheme is to ease the liquidity constraints of companies who purchase wood from the State agency “State Forests” and who are affected by the economic impact of the coronavirus outbreak. The measure is expected to benefit 6,500 companies. The Commission found that the Polish scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €800,000 per company and (ii) the scheme will run until 31 March 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 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.58185 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.