State aid: Commission approves €58.8 million Belgian wage subsidy schemes to support employers in travel, hotel and events sectors affected by coronavirus outbreak

The European Commission has approved three Belgian wage subsidy schemes to support employers in sectors particularly affected by the coronavirus outbreak. In particular, a €28.5 million scheme targets the travel sector, a €7.7 million scheme targets the hotel sector and a €22.6 million scheme targets the events sector. The three schemes were approved under the State aid Temporary Framework. The aid will take the form of wage subsidies. It will cover part of the costs for those employees who had to work and ensure the performance of essential operations despite the absence of related income due to the restrictive measures necessary to limit the spread of the virus. The public support will help employers active in the three sectors to cover the social security contributions, allowing them to resume their activities and to avoid lay-offs. The Commission found that the Belgian schemes are in line with the conditions set out in the Temporary Framework. In particular, (i) the measures will assist companies that are particularly affected by the coronavirus outbreak and are aimed at avoiding layoffs, (ii) the monthly wage subsidies will not exceed 80% of the monthly gross salary of the benefitting personnel, and (iii) the aid will be granted before 31 December 2021. The Commission concluded that the measures are 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 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 decision will be made available under the case numbers SA.62562, SA.62650 and SA.62651 in the State aid register on the Commission’s competition website.