WIREDGOV

The European Commission has approved a €1.23 billion scheme to support the Czech economy in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 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 Czech measure

Czechia notified to the Commission, under the Temporary Crisis Framework, a €1.23 billion scheme to support its economy in the context of Russia's war against Ukraine.

Under this measure, which will be administered by the Ministry of Trade and Industry, the aid will take the form of direct grants.

The measure will be open to all large companies that do not benefit from an energy price cap and that are currently facing significant extra costs in light of the increase of electricity and natural gas prices. The scheme will cover the period from February to December 2022.

The overall aid per beneficiary will not exceed either 30% of the eligible costs or €1.8 million, whatever the lowest. Energy-intensive users that incur operating losses may receive further aid up to €8.2 million, with an aid intensity capped at 50% of the eligible costs, with the possibility to increase up to 70% for companies active in the sectors listed in Annex 1 of the Temporary Crisis Framework.

The Commission found that the Czech scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the individual aid amount will not exceed 50% of the eligible costs for the maximum aid ceiling of €4 million. For beneficiaries qualifying as energy-intensive businesses, the overall aid per beneficiary will not exceed 65% of the eligible costs, or 80% for particularly affected sectors in Annex 1 or the maximum aid ceiling of €50 or €150 million respectively. In addition, the aid will be granted no later than 31 December 2023.

The Commission concluded that the Czech 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.

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