State aid: Commission approves €38.5 million Danish scheme to support companies active in culture sector and small non-professional sporting activities affected by coronavirus outbreak

The European Commission has approved, under EU State aid rules, an approximately €38.5 million (DKK 286.6 million) Danish scheme to support companies active in the culture sector and small non-professional sporting activities affected by the coronavirus outbreak. Under the scheme, companies active in the culture sector and small non-professional sporting activities can receive a grant covering 50% of the ticket prices for activities taking place between 27 June and 9 August 2020, if they provided a 50% discount to their customers with respect to their prices on 15 June 2020. Companies organising summer camps offering culture or sports related activities to clients under 18 years old during the same period are eligible for a compensation of 25% of the participation fee if they granted a 25% discount on such fees to their customers. The Commission assessed the scheme under EU State aid rules, and in particular Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures to remedy a serious disturbance to the economy of a Member State. The Commission found that the Danish scheme is in line with the conditions set out in the State aid Temporary Framework, as applicable at the time when the aid was granted. In particular, (i) the support does not exceed €800,000 per company; and (ii) the aid was not granted 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. 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.62035 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.