ANNOUNCEMENT 10 May 2021

In May 2021, the European Commission approved an umbrella scheme from Czechia that aims at supporting all sectors of the economy through grants, guarantees and loans.

NUMBER OF INTERVENTIONS

3

  • 3 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.62471 ( 2021/N ) Umbrella Scheme for Programmes to Support Entrepreneurs Affected by the Worldwide Spread of COVID-19 under section 3.1 of Temporary Framework
https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_62471

European Commission, Press release 10 May 2021, State aid: Commission approves €1.9 billion Czech scheme to support companies in context of coronavirus outbreak
https://ec.europa.eu/commission/presscorner/detail/en/IP_21_2429

Official Journal of the European Union, C 240, 18 June 2021
https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=OJ%3AC%3A2021%3A240%3ATOC

European Commission's decision. SA.62471
https://ec.europa.eu/competition/state_aid/cases1/202121/293405_2274725_39_2.pdf


Update

SA.100917 COVID-19: Prolongation of the schemes SA.57358, as already amended, SA.58018, as already amended, SA.58167, as already amended, SA.62471, SA.62477 and SA.62970
https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_100917

European Commission's decision. SA.100917 https://ec.europa.eu/competition/state_aid/cases1/202152/SA_100917_B041E17D-0000-C763-9A4F-13A9950AD1AA_28_1.pdf

Update 2
SA.102180 State Aid SA.102180 (2022/N) – Czech Republic COVID-19: Prolongation of the schemes SA.62471 and SA.62477, as already amended
https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_102180

European Commission decision. SA.102180
https://ec.europa.eu/competition/state_aid/cases1/202215/SA_102180_105AE07F-0000-CD60-943A-0D39EC2410F3_32_1.pdf

Inception date: 10 May 2021 | Removal date: 30 Jun 2022

Financial grant

On 10 May 2021, the European Commission approved a CZK 44 billion (USD 2 billion) financial grant scheme from Czechia. The aid will support undertakings operating in all sectors of the economy in order to overcome the consequences of the Covid-19 pandemic. The scheme covers costs incurred within the period between 1 February 2020 and 31 December 2021. It is in force until 31 December 2021.

In order to qualify for the scheme, companies need to prove a 25% to 50% decline in their 2020 turnover compared to the same period in 2019. The amount of aid may not exceed EUR 1,8 million per undertaking. The Czech-Moravian Guarantee and Development Bank is responsible for administering the scheme.

In this context, the European Commission noted that: 'The measure is liable to distort competition since it strengthens the competitive position of the beneficiaries. It also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists.'.

Regardless, the Commission has decided not to raise objections to the aid on the grounds that 'it is compatible with the internal market pursuant to Article 107(3)(b) TFEU.'.

The state aid is approved under the Temporary Framework under the State Aid and its amendments. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March 2020 (see related state act)

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

Update

On 21 December 2021, the European Commission approved the prolongation of the present scheme until 30 June 2022. Maximum aid per undertaking was also raised to EUR 2,3 million. 

On 30 March 2021, the European Commission approved an amendment of the present scheme extending "the eligible period for the costs incurred in the period from 1 February 2020 to 31 December 2021, to a period from 1 February 2020 to 30 June 2022".

 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 10 May 2021 | Removal date: 30 Jun 2022

Loan guarantee

On 10 May 2021, the European Commission approved a CZK 3 billion (USD 142 million) loan guarantee scheme from Czechia. The aid will support undertakings operating in all sectors of the economy in order to overcome the consequences of the Covid-19 pandemic. The scheme covers costs incurred within the period between 1 February 2020 and 31 December 2021. It is in force until 31 December 2021.

In order to qualify for the scheme, companies need to prove a 25% to 50% decline in their 2020 turnover compared to the same period in 2019. The Czech-Moravian Guarantee and Development Bank is responsible for administering the scheme. The maximum duration of guarantees will be 10 years and shall not exceed EUR 1,8 million per undertaking.

In this context, the European Commission noted that: 'The measure is liable to distort competition since it strengthens the competitive position of the beneficiaries. It also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists.'.

Regardless, the Commission has decided not to raise objections to the aid on the grounds that 'it is compatible with the internal market pursuant to Article 107(3)(b) TFEU.'.

The state aid is approved under the Temporary Framework under the State Aid and its amendments. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March 2020 (see related state act)

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

Update

On 21 December 2021, the European Commission approved the prolongation of the present scheme until 30 June 2022. Maximum aid per undertaking was also raised to EUR 2,3 million. 

On 30 March 2021, the European Commission approved an amendment of the present scheme extending "the eligible period for the costs incurred in the period from 1 February 2020 to 31 December 2021, to a period from 1 February 2020 to 30 June 2022".

 
 
N/A
 
N/A
Inception date: 10 May 2021 | Removal date: 30 Jun 2022

State loan

On 10 May 2021, the European Commission approved a CZK 3 billion (USD 142 million) state loan scheme from Czechia. The aid will support undertakings operating in all sectors of the economy in order to overcome the consequences of the Covid-19 pandemic. The scheme covers costs incurred within the period between 1 February 2020 and 31 December 2021. It is in force until 31 December 2021.

In order to qualify for the scheme, companies need to prove a 25% to 50% decline in their 2020 turnover compared to the same period in 2019. The Czech-Moravian Guarantee and Development Bank is responsible for administering the scheme. The maximum duration of loans will be 10 years and shall not exceed EUR 1,8 million per undertaking.

In this context, the European Commission noted that: 'The measure is liable to distort competition since it strengthens the competitive position of the beneficiaries. It also affects trade between Member States, since those beneficiaries are active in sectors in which intra-Union trade exists.'.

Regardless, the Commission has decided not to raise objections to the aid on the grounds that 'it is compatible with the internal market pursuant to Article 107(3)(b) TFEU.'.

The state aid is approved under the Temporary Framework under the State Aid and its amendments. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March 2020 (see related state act)

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

Update

On 21 December 2021, the European Commission approved the prolongation of the present scheme until 30 June 2022. Maximum aid per undertaking was also raised to EUR 2,3 million. 

On 30 March 2021, the European Commission approved an amendment of the present scheme extending "the eligible period for the costs incurred in the period from 1 February 2020 to 31 December 2021, to a period from 1 February 2020 to 30 June 2022".

 
 
N/A
 
N/A