WIREDGOV

The European Commission has approved a €1.34 billion (DKK 10 billion) Danish scheme to support energy intensive companies 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 Danish measure

Denmark notified to the Commission, under the Temporary Crisis Framework, a €1.34 billion scheme to support energy intensive companies in the context of Russia's war against Ukraine.

Under this measure, which will be administered by the Danish Business Authority, the aid will take the form of loans with subsidised interest rates.

The measure will be open to energy intensive small and medium-sized enterprises (‘SMEs') and large companies across sectors. Credit and financial institutions will be excluded from the measure.

The Commission found that the Danish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, (i) the maturity of the loans will not exceed six years; (ii) the reduced interest rates respect the minimum levels set out in the Temporary Crisis Framework; (iii) the individual loan amount per SME and large company will cover the liquidity needs respectively for the 12 months and 6 months following the granting of the aid; and (iv) the support will be granted no later than 31 December 2023.

The Commission concluded that the Danish 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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