State aid: Commission approves increase of €240 million in budget of existing Latvian scheme to support companies affected by coronavirus outbreak

The European Commission has found the modification of an existing Latvian scheme to support companies affected by the coronavirus outbreak to be in line with the State aid Temporary Framework. The existing scheme was approved by the Commission on 16 December 2020 (SA.59592) and was first amended on 3 February 2021 (SA.61338). Latvia notified to the Commission the following modifications (i) an increase of the budget from €70.8 million to €310.8 million (ii) the possibility to grant aid up to €1.8 million per company active in sectors other than primary production of agricultural products, fisheries and aquaculture; and (iii) other technical amendments. The Commission concluded that the scheme, as modified, remains 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.61873 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.