State aid: Commission approves €23 million Belgian measures to support production of coronavirus-relevant products

The European Commission has approved two Belgian measures, for a total of €23 million, to support the production of products relevant to the coronavirus outbreak in the Walloon region. Both measures were approved under the State Aid Temporary Framework. The first scheme, (SA.60414), with an estimated budget of €20 million, will be open to enterprises that produce coronavirus-relevant products and are active in all sectors, except the agriculture, fishery and aquaculture, and financial sectors. Under the scheme, the public support will take the form of direct grants covering up to 50% of the investments costs. The second measure (SA.60198) consists of a €3.5 million investment aid, in the form of a direct grant, to the University of Liège, which aims at supporting the production by the institution of coronavirus related diagnostic tools and the necessary raw materials. The direct grant will cover 80 % of the investment costs. The Commission found that the measures are in line with the conditions of the Temporary Framework. In particular, (i) the aid will cover only up to 80% of the eligible investment costs necessary to create production capacities to manufacture coronavirus relevant products; (ii) only investment projects that started as of 1 February 2020 will be eligible and (iii) eligible investment projects must be completed within six months after the grant of the investment aid. The Commission concluded that the two measures are necessary, appropriate and proportionate to fight the public health crisis, in line with Article 107(3)(c) 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 decisions will be made available under the case numbers SA.60198 and SA.60414 in the State aid register on the Commission’s competition website.