State aid: Commission approves modification of two Czech schemes supporting companies affected by coronavirus outbreak

The European Commission has found the modification of two existing Czech schemes to support companies affected by coronavirus outbreak to be in line with the Temporary Framework. Czechia notified the following modifications to the first scheme, approved on 12 January 2021 (SA.59899): (i) an overall budget increase, from €160 million to €856 million; (ii) an increase of the maximum nominal amount of aid per company; (iii) a prolongation of the scheme until 31 December 2021. In addition, Czechia notified the following amendments to the second scheme, approved on 27 July 2020 (SA.57102) and amended on 12 January 2021 (SA.59334): (i) an overall estimated total budget increase, from €970 million to €1.1 billion; and (ii) a prolongation of the scheme until 31 December 2021. The Commission found that the two Czech schemes, as amended, continue to be in line with the conditions set out in the Temporary Framework. In particular, when it comes to the first scheme, the aid (i) will not exceed €225,000 per company active in the primary production of agriculture products, €270,000 per company active in the fishery and aquaculture sector, and €1.8 million per company active in other sectors; and (ii) will be granted no later than 31 December 2021. Then, when it comes to the second scheme, (i) the measure will assist companies that are particularly affected by the coronavirus outbreak and is 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 two amended Czech schemes remain 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.62442 and SA.62441 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.