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In the future, companies may receive significantly more government aid. The EU Commission has revised its rules for Corona aid, as announced Thursday. Several countries and companies in the EU have recently urged it.
The fixed cost subsidy II framework will be increased from € 800,000 to € 1.8 million and the loss compensation framework for companies directly affected by the crisis from € 3 million to € 10 million. Additionally, guarantees and loans can be converted into non-repayable grants under certain conditions. These then fall below the upper limits of 1.8 million or three million euros.
For the production of agricultural products, the upper limit of state aid in crown will be increased from 100,000 to 225,000 euros per company, and in fish farming from 120,000 to 270,000. According to the EU Commission, all the new provisions will now apply until the end of the year instead of until the end of June.
“With expansion we can help these companies, ensure liquidity and save valuable jobs,” said Finance Minister Gernot Blümel (VP). Austria has been campaigning for the extension of the aid framework since April. “We will now quickly make the necessary adjustments at the national level to be able to adapt ongoing aid programs to the new framework,” said Blümel. Economy Minister Margarete Schramböck (VP) added: “That means we can help our companies even more widely than before.”
In praise of trade and tourism
The trade association described the EU Commission’s decision as a partial success. “This implements a core demand that we have fought for for months. Not all problems will be solved, but it is an important stage victory,” Rainer Will, managing director of the trade association, quotes in a broadcast. Robert Seeber, the federal tourism spokesman, was also pleased. The increase is a ray of hope. The previous upper limits were too low, especially for larger companies, due to the duration of the pandemic.
