The European Commission has approved changes to an existing Polish aid scheme. With the aid, Poland wants to support companies from all sectors of the economy against the background of the invasion of Ukraine by Russia. The approved changes also include a €5.1 billion increase in funding. The amendments were approved under the amended State Aid Temporary Crisis Framework.
The Executive Vice-President of the Commission responsible for competition policy, Margrethe Vestagerexplained that Poland could with the approved changes to cushion the stronger than expected economic consequences of the war and the associated sanctions. “We continue to stand with Ukraine and the Ukrainian people. At the same time, we continue to work closely with Member States to ensure that national support measures can be introduced quickly, efficiently and in a coordinated manner, without jeopardizing fair competition in the internal market.”
Details of the Polish aid scheme
Am 30. June 2022 The Commission approved a €1.2 billion Polish aid scheme to help companies in all sectors in the face of Russia’s invasion of Ukraine. Under this measure, aid is granted in the form of state guarantees for factoring products and new loans.
Poland has notified an amendment to this scheme to the Commission, with a Funding increased by 5.11 billion euros comes along. The funds for guarantees for factoring products will thus be increased from around EUR 209 million to EUR 793 million. An increase from around EUR 939 million to EUR 5.5 billion is planned for new loans.
In addition, Poland informed the Commission of its intention to Increase the maximum amount of guarantees for loans to start-ups. Under the current regime, the guaranteed loan per beneficiary may not exceed i) 15 per cent of its average total turnover in the last three closed accounting periods or ii) 50 per cent of the energy costs incurred in the 12-month period preceding the submission of the aid application. With the change, the duration of their previous existence would be included in the basis of calculation for newly founded companies.
The assessment of the commission
The Commission has come to the conclusion that the scheme notified by Poland, as amended, remains necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State. It is therefore related to Article 107 paragraph 3 letter b TFEU and the im Temporary Crisis Framework specified conditions in accordance.
On this basis, the Commission has approved the changes under EU state aid rules.
Further information:
Full press release of August 11th
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