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State aid: Commission approves modifications to Polish scheme, including €5.1 billion budget increase, to support companies in context of Russia's invasion of Ukraine

The European Commission has approved modifications, including a budget increase of €5.1 billion (PLN 24.5 billion), to an existing Polish scheme to support companies across sectors in the context of Russia's invasion of Ukraine. The amendments were approved under the Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 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.

Executive Vice-President Margrethe Vestager, in charge of competition policy, yesterday said:

“The amendments approved today will help Poland to further support companies across sectors and to continue to mitigate the higher than expected economic impact of the current crisis and the related sanctions. We continue to stand with Ukraine and its people. At the same time, we continue working closely with Member States to ensure that national support measures can be put in place in a timely, coordinated and effective way, while protecting the level playing field in the Single Market.”

On 30 June 2022, the Commission approved, under the Temporary Crisis Framework, a €1.2 billion Polish scheme (PLN 5.5 billion) to support companies across sectors in the context of Russia's invasion of Ukraine. Under the scheme, the aid takes the form of State guarantees on factoring products and on new loans.

Poland notified the Commission of its intention to amend the existing scheme to increase the overall budget by €5.11 billion (PLN 24.5 billion). In particular, the total budget for State guarantees on factoring products will increase from approximately €209 million (PLN 1 billion) to €793 million (PLN 3.8 billion). When it comes to guarantees on new loans, the total budget will increase from approximately €939 million (PLN 4.5 billion) to €5.5 billion (PLN 26.2 billion).

In addition, Poland notified the Commission an amendment with respect to the maximum amount of aid in the form of guaranteed loans for newly established enterprises specifically. Under the existing scheme, the maximum guaranteed loan per beneficiary would notably be equal to (i) 15% of its average total annual turnover over the last three closed accounting periods; or (ii) 50% of the energy costs incurred over a 12-month period preceding the application for aid. With the amendment, such a maximum amount of aid in the form of guaranteed loans will be calculated for newly established enterprises by taking into account the duration of existence of the newly established enterprise.

The Commission found that the Polish scheme, as amended, remains 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 amendments to the Polish scheme under EU State aid rules.

Click here for the full press release


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