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No fixed cost subsidy decision
There is no decision yet on the extension of the “fixed cost subsidy” for larger companies. Here the government needs the approval of the EU Commission. Blümel now wants to examine its offer to approve a maximum financing amount of two million euros per company. “If possible”, the finance minister will continue to campaign for significantly higher subsidies of up to five million euros, as he said after the Council of Ministers.
While the government can extend its support measures to small businesses, clubs and artists on its own, approval from the EU Commission is required for the “fixed-cost subsidy” for larger companies. It must review state aid to avoid distorting free competition. On Monday, the Commission sent a proposal to EU members that would amount to a ceiling of two million euros by the end of June 2021.
How many Austrian companies would need the maximum funding of 5 million euros that he defended to cover their fixed costs? Blümel couldn’t say Wednesday. That will depend, among other things, on the fall in sales in winter tourism. According to their information, the Commission’s proposal stipulates that up to 70 percent of its fixed costs could be covered for the smallest companies and half for the largest. It is now being examined whether companies could also credit depreciation and “missed services.”
€ 8 billion has been earmarked for the first phase of the fixed cost grant, which has already been approved by the Commission. According to Blümel, however, only around 200 million euros were disbursed, 500 million euros were requested. This is due to the fact that most of the funding is requested in hindsight. According to the minister, it was originally assumed that a payment would only be made in 2021.
