ANNOUNCEMENT 18 May 2021

In May 2021, the European Commission approved a Spanish state aid measure that increases for the second time the budget of an umbrella scheme approved in April 2020 (see related state act).

NUMBER OF INTERVENTIONS

4

  • 4 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.62838 Spain – Covid-19 - Amendment of SA.56851 (2020/N) and SA.57019 (2020/N). 18/05/2021. Available at: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_62838

European Commission's Decision. Subject: State Aid SA.62838 (2021/N) – Spain COVID-19: Amendment of SA.56851 (2020/N) and SA.57019 (2020/N). Available at: https://ec.europa.eu/competition/state_aid/cases1/202121/293971_2276651_25_2.pdf

Update December 2021

SA.100974 COVID-19: Prolongation and amendments of the schemes SA.56851, SA.57019, 57659, and SA.62067, as already amended: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_100974

European Commission's Decision. Subject: State Aid SA. SA.100974 (2021/N) – Spain, COVID-19: Prolongation and amendments of the schemes SA.56851, SA.57019, SA.57659 and SA.62067, as already amended. 21/12/2021. Available at: https://ec.europa.eu/competition/state_aid/cases1/202203/SA_100974_10CE527E-0000-CAB3-8D7E-C346A48836CB_73_1.pdf

Inception date: 18 May 2021 | Removal date: 30 Jun 2022

Financial grant

On 18 May 2021, the European Commission approved a Spanish state measure that increases the budget and extends the First Umbrella scheme to support the economy in the context of the COVID-19 pandemic approved in April 2020 (see related state act). Notably, the budget increased from EUR 13.65 billion (approx. USD 16.7 billion) to EUR 43.65 billion (approx. USD 53.3 billion).

The umbrella scheme is composed of several instruments, including direct grants. Individual ceilings are set at EUR 1.8 million (approx. USD 2.2 million) per company active in most sectors; whilst specific thresholds apply to companies operating under the agriculture, fisheries and aquaculture sectors. The amendment also includes the possibility for SMEs who were in difficulty before 31 December 2019 to apply for support. Support can be granted until 31 December 2021.

The European Commission’s Decision referred to the text of the original decision regarding the measure being “liable to distort competition, since it strengthens the competitive position of their beneficiaries”, as well as “affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists”.

Regardless, the Commission approved the state aid, without raising objections, on the grounds that the measure is compatible with the internal market pursuant to Article 107(3)(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 (see related state act).

Update

On 21 December 2021, the Commission adopted SA. 100974 extending the validity of the present scheme until 30 June 2022. 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 18 May 2021 | Removal date: 30 Jun 2022

State loan

On 18 May 2021, the European Commission approved a Spanish state measure that increases the budget and extends the First Umbrella scheme to support the economy in the context of the COVID-19 pandemic approved in April 2020 (see related state act). Notably, the budget increased from EUR 13.65 billion (approx. USD 16.7 billion) to EUR 43.65 billion (approx. USD 53.3 billion).

The umbrella scheme is composed of several instruments, including repayable advances and subsidized loans. The loans will be granted based on investment or working capital needs. Moreover, the beneficiaries are the self-employed, SMEs, and large companies from all economic sectors (except credit institutions). The amendment also includes the possibility for SMEs who were in difficulty before 31 December 2019 to apply for support. Support can be granted until 31 December 2021. Support can be granted until 31 December 2021.

The European Commission’s Decision referred to the text of the original decision regarding the measure being “liable to distort competition, since it strengthens the competitive position of their beneficiaries”, as well as “affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists”.

Regardless, the Commission approved the state aid, without raising objections, on the grounds that the measure is compatible with the internal market pursuant to Article 107(3)(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 (see related state act).

Update

On 21 December 2021, the Commission adopted SA. 100974 extending the validity of the present scheme until 30 June 2022. 

 
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N/A
Inception date: 18 May 2021 | Removal date: 30 Jun 2022

Loan guarantee

On 18 May 2021, the European Commission approved a Spanish state measure that increases the budget and extends the First Umbrella scheme to support the economy in the context of the COVID-19 pandemic approved in April 2020 (see related state act). Notably, the budget increased from EUR 13.65 billion (approx. USD 16.7 billion) to EUR 43.65 billion (approx. USD 53.3 billion).

The umbrella scheme is composed of several instruments, including guarantees on loans with a maximum maturity of 6 years. The loan guarantees will have the following coverages: (i) 90% of the principal where losses are sustained proportionally by the credit institution and the State; or (ii) 35% of loan principal where losses are first attributed to the state and only then to the credit. Support can be granted until 31 December 2021.

The European Commission’s Decision referred to the text of the original decision regarding the measure being “liable to distort competition, since it strengthens the competitive position of their beneficiaries”, as well as “affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists”.

Regardless, the Commission approved the state aid, without raising objections, on the grounds that the measure is compatible with the internal market pursuant to Article 107(3)(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 (see related state act).

Update

On 21 December 2021, the Commission adopted SA. 100974 extending the validity of the present scheme until 30 June 2022. 

 
N/A
 
N/A
Inception date: 18 May 2021 | Removal date: 30 Jun 2022

Tax or social insurance relief

On 18 May 2021, the European Commission approved a Spanish state measure that increases the budget and extends the First Umbrella scheme to support the economy in the context of the COVID-19 pandemic approved in April 2020 (see related state act). Notably, the budget increased from EUR 13.65 billion (approx. USD 16.7 billion) to EUR 43.65 billion (approx. USD 53.3 billion).

The umbrella scheme is composed of several instruments, including guarantees on loans with a maximum maturity of 6 years. Individual ceilings are set at EUR 1.8 million (approx. USD 2.2 million) per company active in most sectors; whilst specific thresholds apply to companies operating under the agriculture, fisheries and aquaculture sectors. The amendment also includes the possibility for SMEs who were in difficulty before 31 December 2019 to apply for support. Support can be granted until 31 December 2021.

The European Commission’s Decision referred to the text of the original decision regarding the measure being “liable to distort competition, since it strengthens the competitive position of their beneficiaries”, as well as “affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists”.

Regardless, the Commission approved the state aid, without raising objections, on the grounds that the measure is compatible with the internal market pursuant to Article 107(3)(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 (see related state act).

Update

On 21 December 2021, the Commission adopted SA. 100974 extending the validity of the present scheme until 30 June 2022.

 
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