State aid: Commission approves €99.4 million Danish scheme to support cafés, restaurants, nightclubs, discotheques, venues and their suppliers in context of coronavirus outbreak

The European Commission has approved an approximately €99.4 million (DKK 740 million) Danish scheme to support cafés, restaurants, nightclubs, discotheques and venues that are restricted on their opening hours, as well as their suppliers, in the context of the coronavirus outbreak. The measure was approved under the State aid Temporary Framework. The public support will take the form of direct grants. Beneficiaries will receive an amount aid equivalent to a percentage of their fixed costs in proportion to the decline in turnover experienced between 1 September 2020 and 31 December 2020, compared to the same period in 2019. Beneficiaries can apply for compensation until 30 April 2021. The purpose of the measure is to mitigate the sudden liquidity shortages that these companies are facing because of the restrictive measures imposed by the government to limit the spread of the virus. The Commission found that the Danish measure is in line with the conditions set out in the Temporary Framework. In particular, the support (i) will not exceed €800,000 per company; and (ii) will be granted no later than 30 June 2021. The Commission concluded that the scheme 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.59048 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.