Brussels, 5 December 2022
The European Commission has found the amendments to an existing Flemish scheme, including a €700 million budget increase, to support companies in the context of Russia’s war against Ukraine to be in line with the State Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022.
The Commission approved the original scheme on 12 July 2022 (SA.103314). Belgium notified the following notifications to the existing scheme: (i) an overall budget increase by €700 million; (ii) an adjustment of the eligibility conditions, to include also large companies; (iii) an extension of the period, in relation to which aid may be granted, until 31 December 2023; (iv) a modification of the duration and interest rates of the loans; and (v) 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 Flemish scheme, as modified, continues to be in line with the conditions set out in the Temporary Crisis Framework. In particular, when it comes to limited amounts of aid, the support will not exceed €250,000 per company active in the primary production of agricultural products, €300,000 per company active in fishery and aquaculture sectors and €2 million per company in all other sectors. When it comes to liquidity support, the maximum amount per beneficiary will be 15% of its average total annual turnover over the last three closed accounting periods, and the annual interest rates on the loans respect the minimum levels set out in the Temporary Crisis Framework. Finally, the support will be granted no later than 31 December 2023.
The Commission therefore concluded that the amended measure 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 amendments to the Flemish scheme 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 the case number SA.104845 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission
State aid: EU Commission approves €250m Flemish scheme to support companies facing increased energy costs caused by Russia’s war
Brussels, 5 December 2022
The European Commission has approved a €250 million Flemish scheme to support companies facing increased energy costs in the context of Russia’s war against Ukraine. The scheme 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.
Under the scheme, the aid will take the form of direct grants up to €500,000 per company and up to €4 million for energy intensive businesses. Furthermore, the latter are eligible for increased support up to €7.5 million if they are active in particularly affected sectors listed in Annex 1 of the Temporary Crisis Framework. The aid will be granted only to beneficiaries that have incurred operating losses. The purpose of the scheme is to mitigate the exceptionally large increases in the price of natural gas and electricity incurred by companies, which cannot be passed on to final consumers or with which they are unable to cope.
The Commission found that the Flemish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the individual aid amount will not exceed 50% of the eligible costs for the maximum aid ceiling of €4 million. For beneficiaries which qualify as energy-intensive businesses and are active in particularly affected sectors in Annex 1, the overall aid per beneficiary will not exceed 40% of the eligible costs for the maximum aid ceiling of €100 million. In addition, the aid will be granted before 31 December 2023.
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 set out in the Temporary Crisis Framework. On this basis, the Commission approved the scheme 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 the number SA.104588 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission