State aid: Commission approves €20 billion Spanish guarantee schemes for companies and self-employed affected by coronavirus outbreak
Daily News 25 / 03 / 2020
Source: European Commission Spokesperson's Service
The European Commission has found two Spanish guarantee schemes for companies and self-employed workers affected by the coronavirus outbreak to be in line with EU State aid rules. The schemes, with a total budget of approximately €20 billion, were approved under the State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak adopted by the Commission on 19 March 2020. Spain notified to the Commission under the Temporary Frameworktwo guarantee schemes on new loans and refinancing operations for (i) self-employed workers and small and medium-sized enterprises (SMEs); and (ii) larger companies, all affected by the coronavirus outbreak. The schemes have a total budget of approximately €20 billion. The objective of the measures is to ensure that these companies have liquidity to help them safeguard jobs and continue their activities faced with the difficult situation caused by the coronavirus outbreak. The Commission found that the measures are in line with the conditions set out in the Temporary Framework. The Commission concluded that the Spanish guarantee schemes will contribute to managing the economic impact of the coronavirus outbreak in Spain. The measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU State aid rules. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “The economic impact of the coronavirus outbreak is severe. Together with Member States, we are working to alleviate this impact as much as we can. And we need to act in a coordinated manner. With these two Spanish guarantee schemes on new loans and refinancing operations Spain will support self-employed workers and small and medium-sized enterprises affected by the coronavirus outbreak to weather the crisis. The schemes have a total budget of approximately €20 billion and we have approved them today under the new State aid Temporary Framework. We continue working closely with Member States to ensure timely support to their economy through these difficult times.” The full press release is available online.