Brussels, 16 February 2023
The European Commission has approved an amendment to an existing Czech scheme to support companies in the context of Russia’s war against Ukraine. The amendment was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU’), recognising that the EU economy is experiencing a serious disturbance.
The Commission approved the original scheme in August 2022 (SA.103616). The scheme aims at supporting small and medium-sized companies active in manufacturing of food products and beverages that are affected by the current crisis. Czechia notified the following modifications to the existing scheme: (i) a budget increase by €10 million; (ii) an extension of the scheme until 31 December 2023; and (iii) an increase of the maximum aid ceilings, in line with the Temporary Crisis Framework as amended on 28 October 2022.
The Commission found that the Czech scheme, as amended, continues to be in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid (i) will not exceed €2 million per company; and (ii) will be granted by 31 December 2023 at the latest. The Commission therefore concluded that the amended scheme 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 Crisis Framework. On this basis, the Commission approved the amendment under EU State aid rules.
More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine can be found here. The non-confidential version of the decision will be made available under case number SA.106203 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission