Sun. Jul 14th, 2024

Brussels, 9 December 2022

The European Commission has found the amendments to existing Hungarian schemes, including €3 billion (HUF 1.23 trillion) budget increase, to support companies in the context of Russia’s war against Ukraine to be in line with  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.

The Commission approved the original schemes on 17 June 2022 (SA.102986), 20 June 2022 (SA.103089), 11 July 2022 (SA.103315) and on 26 October 2022 (SA.104515). Hungary notified the following modifications to the existing schemes: (i) an overall budget increase by €3 billion (HUF 1.23 trillion); (ii) a modification of the duration and interest rates of the loans; (iii) an increase of the maximum aid ceilings, in line with the Temporary Crisis Framework as amended on 28 October 2022; and (iv) an extension of the period, in relation to which aid may be granted, until 31 December 2023.

The Commission found that the Hungarian schemes, as modified, continue 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 concluded that the amended 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 Crisis Framework. On this basis, the Commission approved the amendments to the existing schemes 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.104850 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

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