Sun. Jun 26th, 2022

Brussels, 13 June 2022

The European Commission has approved a Spanish umbrella scheme to support companies active in all sectors in the context of Russia’s invasion of Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (‘TFEU’), recognising that the EU economy is experiencing a serious disturbance.

The measure will be open to companies of all sizes and active in all sectors, with the exception of the financial one, which are affected by the current crisis and the related sanctions. Under the umbrella scheme, the aid will take the form of (i) limited amounts of aid in any of the following forms: direct grants, tax advantages, repayable advances, guarantees, loans and equity; and (ii) liquidity support in the form of guarantees on loans and loans with subsidised interest rates. The Commission found that the Spanish scheme is in line with the conditions set out in the Temporary Crisis Framework. All types of aid will be granted by 31 December 2022 at the latest.

In particular, in relation to the limited amounts of aid, the support will not exceed €35,000 per company active in the agriculture, fisheries and aquaculture sectors and €400,000 per company active in all other sectors. In relation to liquidity support in the form of guarantees on loans, (i) the guarantees are limited in time and (ii) the guarantee premiums respect the minimum levels (with the option of being modulated in order to reflect the guarantee coverage and the duration of the guaranteed loans) set out in the Temporary Crisis Framework.

Finally, in relation to liquidity support in the form of loans with subsidised interest rates, the measure will allow the same minimum credit risk margins set out in the Temporary Crisis Framework. Furthermore, the public support will come subject to conditions to limit undue distortions of competition, including safeguards aimed at ensuring that the advantages of the measure are passed on to the largest extent possible to the final beneficiaries via the financial intermediaries. The Commission concluded that the Spanish umbrella scheme 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 Crisis Framework.

On this basis, the Commission approved the aid measure under EU State aid rules. More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s invasion of Ukraine can be found here. The non-confidential version of the decision will be made available under the number SA.102771 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

Source – EU Commission