State aid: Commission approves €9 million Danish scheme to support micro and small self-employed undertakings, freelancers and professional artists affected by cancellation of events due to coronavirus outbreak

The European Commission has approved a €9 million (DKK 70 million) Danish scheme to help micro and small self-employed undertakings, freelancers and professional artists affected by the cancellation of events due to the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The support will take the form of direct grants. The beneficiaries (i) must have a yearly income strongly dependent on delivering goods or services to large events that should have taken place in spring and summer 2020 but were cancelled due to the coronavirus outbreak, and (ii) must have incurred a loss in income of at least 50% compared to their average monthly income in 2019. The aid will cover up to 60% of lost production costs directly related to the events cancelled because of the measures adopted by the Danish government to limit the spread of the coronavirus, and incurred prior to 6 April 2020, when such restrictive measures were adopted. Production costs for goods or services, which can be reused or are reimbursed, and costs for permanent assets are excluded from the scheme. The aim of the scheme is to mitigate the sudden liquidity shortages that the beneficiaries are facing due to the restrictive measures that the Danish government had to impose to limit the spread of the virus, and to ensure continuity of their economic activity. The Commission found that the Danish scheme is in line with the conditions set out in the Temporary Framework. In particular, the support will not exceed €100,000 per beneficiary active in the agriculture sector, €120,000 per beneficiary active in the fishery and aquaculture sector and €800,000 per beneficiary active in all other sectors. 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 set out in 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.58681 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.