The European Commission has approved an approximately €2.7 million (DKK 20m) Danish scheme to support companies that incurred distinct seasonal losses due to the coronavirus pandemic. The scheme was approved under the State aid Temporary Framework. Under the scheme, the aid will take the form of direct grants. The measure will be open to companies that were unable to sell seasonal goods and to cover distinct seasonal expenses – such as for example single-use holiday related decorations or seasonal perishable food – due to the coronavirus related restrictions put in place during the festivities period in December 2021.
As a result, those companies incurred distinct seasonal losses. The purpose of the scheme is to address the liquidity needs of the beneficiaries and to help them continue their activities during and after the pandemic. The Commission found that the Danish scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €290,000 per company active in the primary production of agricultural products, €345,000 per company active in the fishery and aquaculture sector and €2.3m per company active in all other sectors; and (ii) will be granted no later than 30 June 2022.
The Commission concluded that the measure is 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 measure under EU state aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.101840 in the state aid register on the Commission’s competition website once any confidentiality issues have been resolved.
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