ANNOUNCEMENT 21 Jan 2021

In January 2021, the European Commission approved the federal assistance scheme for damage compensation caused by the lockdown in November and December 2020. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

European Commission, Letter to the Member State on 21 January 2021, State Aid SA.60045 (2021/N) – Germany, COVID-19: Federal scheme for damage compensation for the November and December 2020 lockdown:
https://ec.europa.eu/competition/state_aid/cases1/20214/291464_2237898_57_2.pdf

European Commission, SA.60045 November Assistance Extra under Article 107 (2)(b) TFEU-Covid: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_60045

Inception date: 21 Jan 2021 | Removal date: 30 Jun 2021

Financial grant

On 21 January 2021, the European Commission approved Germany's umbrella scheme for damage compensation for companies affected by the November and December 2020 lockdown in context with the COVID-19 pandemic. German enterprises that were prohibited from carrying out their individual activities due to lockdown measures ordered by the authorities receive direct grants. Germany has indicated an estimated budget of EUR 12 billion (approx. USD 14.6 billion).  

The approved financial aid scheme focuses on financial aid provided by the "Novemberhilfe extra" package. Damages that occurred directly from lockdown measures from 16 March 2020 until 31 December 2020 also may be compensated. The aid ceiling for the direct grants is 75% of the turnover from the reference months November and December 2019 or the actual damage if this amount is lower. 

In its decision, the European Commission confirmed that "as the scheme covers sectors and undertakings involved in trade between Member States (...) there is a risk that the aid could distort or threaten to distort competition and affect such trade".  

The European Commission approved the state aid without raising objections, concluding that the measure is compatible with the internal market under Article 107(2)(b) of the TFEU.

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED SECTORS

 
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