IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 15 Oct 2021 | Removal date: 31 Dec 2021

Financial grant

On 15 October 2021, the European Commission approved a EUR 700 million (approx. USD 811.6 million) French compensation scheme to support certain retailers and services providers in the context of the COVID-19 pandemic. The scheme provides support in the form of financial grants to compensate for the rents paid during the lockdown period of 1 February 2021 until 31 May 2021. Support can be granted until 31 December 2021.

In particular, the scheme is open to certain retail outlets (furniture, clothing, IT, sports goods, opticians, jewellers) and some services (repair of personal and household goods, hairdressing and beauty care). The scheme is open to enterprises of all sizes. 

In this context, Margrethe Vestager, the Executive Vice-President, stated: “Closures to limit the spread of the pandemic have resulted in very significant losses in turnover for some retailers and services. This EUR 700 million scheme will allow France to partially compensate those companies for the losses incurred”.

In this context, the European Commission’s Decision highlighted: “The measure risks distorting competition as it reinforces the situation financial support of the beneficiary companies. It may also affect the exchanges between Member States since the beneficiary companies are either may be active in other Member States and are active in sectors open to competition and investment from other Member States”.

Regardless, the Commission approved the state aid without raising objections, concluding that the scheme “is compatible with the internal market pursuant to Article 107(2)(b) of the Treaty on the Functioning of the European Union".

The state aid is approved under the Temporary Framework under the State Aid and its amendments of 2 April 2020, 13 October 2020 and 1 February 2021. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March 2020 (see related state act).

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

Please report this page in case you detect an inaccuracy in its content.