Mon. Jul 15th, 2024

Brussels, 27 January 2023

The European Commission has found the re-introduction of a Romanian aid scheme 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 scheme constitutes a re-introduction of a measure that the Commission initially approved in September 2022 (SA.103626) and which expired on 31 December 2022. Under the scheme, public support takes the form of (i) guarantees on new loans and (ii) direct grants. Romania notified a number of amendments to the original scheme, including notably: (i) an overall budget increase by up to €695 million (RON 3.4 billion); (ii) the re-introduction of the scheme until 31 December 2023; and (iii) an increase of the maximum aid ceilings for direct grants, in line with the Temporary Crisis Framework as amended on 28 October 2022. The re-introduced scheme aims at ensuring that sufficient liquidity remains available to companies affected by the disturbance of the economy caused by the current geopolitical crisis.

The Commission found that the Romanian scheme, as re-introduced, continues to be in line with the conditions set out in the Temporary Crisis Framework. In particular, with respect to the guarantees on loans (i) the aid will cover guarantees on loans with a limited maturity and size; and (ii) the guarantee premiums respect the minimum levels set out in the Temporary Crisis Framework. With respect to the direct grants, the aid will not exceed €250,000 per beneficiary active in the primary production of agricultural products, €300,000 per beneficiary active in the fishery and aquaculture sectors and €2 million per beneficiary active in all other sectors. Support under the scheme will be granted no later than 31 December 2023. The Commission concluded that the 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 scheme, as re-introduced, 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.105503 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

Source – EU Commission

 

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