State aid: Commission approves €150 million Lithuanian aid scheme to support companies affected by coronavirus outbreak

The European Commission has approved a €150 million Lithuanian aid scheme to support companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The scheme will be open companies active in all sectors of the economy (with the exception of the agricultural, fishery, aquaculture and financial sectors) provided they meet certain conditions (among others, that their turnover was under €50 million in 2019). The public support will take the form of direct grants. Companies that can demonstrate a turnover decline of at least 30% in the period between 1 October 2020 and 31 January 2021, compared to the same period of the previous year will be eligible to receive aid amounting to 25% of their employer payroll tax liability for the fiscal year 2019. Companies that are not able to prove a turnover decline in the period between 1 October 2019 and 31 January 2020, due to the lack of sufficient information, will be eligible to receive a flat amount of €500. The scheme aims at mitigating the liquidity shortages that the beneficiaries are facing due to the coronavirus outbreak and at helping the beneficiaries continue their activities during and after the outbreak. The Commission found that the Lithuanian measure 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) will be granted until no later than 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. The non-confidential version of the decision will be made available under the case number SA.60308 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.