State aid: Commission approves €193 million Polish scheme to support companies operating in the tourism and cultural sector affected by coronavirus outbreak

The European Commission has approved an approximately €193 million (PLN 851.9 million) scheme to support companies operating in the tourism and cultural sector affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The support will take the form of (i) subsidised interest rates on loans, (ii) direct grants, and (iii) exemptions from the obligation to pay certain social contributions. Under the subsidised interest rates measure, the State support will cover the reimbursements, on behalf of tour operators, of package tours cancelled because of the coronavirus outbreak. The aid in the form of direct grants will support companies operating in the tourism and cultural sector, which had to interrupt their activities due to the coronavirus outbreak. The exemption from the obligation to pay certain contributions will support companies active in the tourism and cultural sector, which have lost more than 80% of their revenues due to the outbreak. The Commission found that the Polish scheme is in line with the conditions set out in the Temporary Framework. In particular: (i) the reduced interest rates will be at least equal to the minimum levels set in the Temporary Framework; (ii) the direct grants, and (iii) the exemptions from the obligation to pay certain social contribution will not exceed €800,000 per company and will be granted no later than 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 of the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.58102 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.