ANNOUNCEMENT 14 Sep 2021

In September 2021, the European Commission approved a Slovenian state loan scheme to support enterprises in the tourism sector. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

European Commission, Letter to the Member State on 14 September 2021, State Aid State Aid SA.64421 (2021/N) – Slovenia, COVID-19: Aid in the form of subsidised interest rates for loans:
https://ec.europa.eu/competition/state_aid/cases1/202138/296312_2315438_48_2.pdf

European Commission, SA.64421 ( 2021/N ) Slovenia COVID-19 – Aid in the form of subsidised interest rates for loans: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_64421

Inception date: 14 Sep 2021 | Removal date: 31 Dec 2021

State loan

On 14 September 2021, the European Commission approved Slovenia's aid scheme, which provides state loans to certain enterprises active in tourism sectors. Slovenia has indicated a total budget of EUR 10 million (approx. USD 11.8 million). The aid may be granted until 31 December 2021.

More specifically, the aid scheme provides state loans to tour operators, travel agencies, urban passenger transport and enterprises renting or leasing water transport equipment. Beneficiaries receive a state loan capped at 25% of the total 2019 turnover or double the annual wage bill with up to 6 years of maturity. The maximum aid amount is limited to EUR 1.8 million (approx. USD million). The aid is open both to SMEs and large companies. 

The Ministry of Economic and Development and Technology is the administrative authority. The aid scheme aims to ensure liquidity and mitigate adverse economic effects caused by the COVID-19 pandemic. 

In its decision, the European Commission confirmed that the measures in question "is liable to distort competition, since it strengthens the competitive position of its beneficiaries". Furthermore, "it also 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, concluding that the scheme "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 2020 (see the related State Act).

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

 
N/A

AFFECTED PRODUCTS

 
N/A