State aid: Commission approves modified €1.2 billion Danish ‘umbrella’ scheme to support self-employed affected by coronavirus outbreak

The European Commission has found the modification of the existing Danish ‘umbrella’ scheme to support micro and small sized self-employed undertakings affected by the coronavirus outbreak to be in line with the State Aid Temporary Framework. The original ‘umbrella’ scheme was approved by the Commission on 8 December 2020 (SA.59764). Denmark notified the following modifications to the scheme: (i) an increase in the total budget of the scheme, from DKK 500 million per month (approximately €67 million) to DKK 615 million per month (approximately € 82.5 million), for a total estimated budget of the entire scheme of DKK 9.2 billion (approximately €1.2 billion);  (ii) the increase of the maximum aid amount per month that can be granted to each beneficiary, from DKK 23,000 (approximately €3,090) to DKK 33,000 (approximately €4,400), (ii) the prolongation of the scheme until 31 December 2021. The Commission found that the scheme, as modified, is in line with the conditions set out in the Temporary Framework. In particular, the support (i) will not exceed €225,000 per beneficiary active in the agriculture sector, €270,000 per beneficiary active in the fishery and aquaculture sector and €1.8 million per beneficiary active in all other sectors as provided by the Temporary Framework; and (ii) aid will be granted before 31 December 2021. The Commission concluded that the scheme, as amended, 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 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.61946 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.