State aid: Commission approves €20 million Estonian scheme to compensate international ferry operators for damages suffered due to the coronavirus outbreak

The European Commission has approved under EU State aid rules a €20 million Estonian scheme to compensate four international passenger ferry operators active on the routes connecting Estonia with Finland and with Sweden for damages suffered due to the coronavirus outbreak. Since mid-March, the Estonian authorities have put in place travel restriction measures necessary to limit the spread of the virus. These restrictions resulted in a sharp decline in passenger numbers and severely affected the revenues of the ferry operators. Under the scheme, these four operators will be entitled to compensation for damages incurred while travel restrictions were in place, in the form of direct grants. With respect to the Estonia – Finland – Estonia route, the compensation will cover the period between 13 March and 15 June 2020 (period in which the travel restrictions between the two countries were in force). With respect to the Estonia – Sweden – Estonia route, the compensation will cover the period between 13 March and the date on which the travel restrictions between the two countries are lifted, but no later than 31 December 2020. The compensation will cover up to 80% of the damages suffered, calculated as the difference between the lost revenues and the savings in variable costs for the period mentioned above (during which they were prevented from operating), compared to the same period in 2019. The Commission found that the scheme is in line with Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors for the damages directly caused by exceptional occurrences, such as the coronavirus outbreak. The Commission found that the Estonian scheme will compensate damages that are directly linked to the coronavirus outbreak. It also found that the measure is proportionate, as the envisaged compensation does not exceed what is necessary to make good the damage. The Commission therefore concluded that the scheme is in line with EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.57643 in the State aid case register on the Commission’s competition website once any confidentiality issues have been resolved.