State aid: Commission approves Danish guarantee scheme for SMEs affected by Coronavirus outbreak
The European Commission has found a DKK 1 billion (approx. €130 million) Danish guarantee scheme for small and medium-sized enterprises (SMEs) affected by Coronavirus outbreak to be in line with EU State aid rules. The schemes were approved under the State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak adopted by the Commission on 19 March 2020. The Commission approved the Danish scheme within 48 hours from the entry into force of the Framework.
Executive Vice President Margrethe Vestager, in charge of competition policy, recently (21 March 2020) said:
"SMEs are the backbone of our economy. We need to make sure that they can overcome the extremely difficult situation triggered by the Coronavirus outbreak. The Danish guarantee scheme for SMEs is an important contribution to reaching this objective. Today, we have approved this measure under the new State aid Temporary Framework, within less than 48 hours from its adoption. We continue working with Member States to ensure timely, coordinated and effective action.”
The Danish support measures
Denmark notified to the Commission a guarantee scheme for SMEs affected by the Coronavirus outbreakunder the Temporary Framework. It has a budget of DKK 1 billion (approx. €130 million).
The scheme aims at limiting the risks associated with issuing operating loans to those companies that are most severely affected by the economic impact of the Coronavirus outbreak. The objective of the measure is to ensure these companies can continue their activities faced with the difficult situation caused by the coronavirus.
The Commission found that the Danish measures are in line with the conditions set out in the Temporary Framework. They cover guarantees on operating loans with a limited maturity and size, and limit the risk taken by the State to a maximum of 70%. This ensures that support is swiftly available at favourable conditions and limited to those who need it in this unprecedented situation. To achieve this goal, the measures also involve minimum remuneration and safeguards to ensure that the aid is effectively channelled by the banks to the beneficiaries in need.
The Commission concluded that that the Danish guarantee scheme for SMEs will contribute to managing the economic impact of the coronavirus in Denmark. The measures are 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 Framework.
On this basis, the Commission approved the measures under EU State aid rules.
Latest News from
A passenger who reserved his or her flight through a travel agency may bring an action for compensation for a long flight delay against the air carrier before the courts of the place of departure of the flight27/03/2020 11:10:00
Notwithstanding the absence of a contract between that passenger and the carrier, such an action comes within ‘matters relating to a contract’ within the meaning of the regulation on jurisdiction, with the result that it may be brought before the courts of the place of supply of the air carriage service.
Consumer credit agreements must specify clearly and concisely how the withdrawal period is to be calculated27/03/2020 09:25:00
It is not sufficient for an agreement to refer, with respect to mandatory information the communication of which to the consumer determines when the withdrawal period starts to run, to a provision of national law that itself refers to other provisions of national law.
Air pollution goes down as Europe takes hard measures to combat coronavirus26/03/2020 15:25:00
The European Environment Agency’s (EEA) data confirm large decreases in air pollutant concentrations – of nitrogen dioxide (NO2) concentrations in particular – largely due to reduced traffic and other activities, especially in major cities under lockdown measures. Reductions of around half have been seen in some locations. The EEA’s data are measured hourly, on the ground, at about 3,000 monitoring stations across European countries.
Coronavirus: Parliament to vote on €37 billion crisis response26/03/2020 14:43:00
MEPs will vote to make €37 billion from EU structural funds available to EU countries to tackle the coronavirus crisis during the plenary session on 26 March.
Speech by President von der Leyen at the European Parliament Plenary on the European coordinated response to the COVID-19 outbreak26/03/2020 13:25:00
I would firstly like to thank all those of you who have made this extraordinary session possible under such exceptional circumstances.
Coronavirus puts women in the frontline26/03/2020 11:33:00
In Europe, we are all adjusting to new ways of living because of the effects of the coronavirus.
ESMA Issues Guidance ON Accounting Implications OF COVID-1926/03/2020 09:25:00
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has issued a Public Statement on some accounting implications of the economic support and relief measures adopted by EU Member States in response to the COVID-19 outbreak.
Antitrust: Commission prolongs the validity of block exemption for liner shipping consortia25/03/2020 16:43:00
The European Commission has prolonged for another four years the regulation outlining the conditions under which liner shipping consortia can provide joint services without infringing EU antitrust rules that prohibit anticompetitive agreements between companies.
Remarks by Commissioner Gentiloni at the Eurogroup press conference25/03/2020 15:25:00
In the eight days since our last meeting, the seriousness of the outbreak has become clear to all of our citizens.