EU approves €8 billion Austrian scheme to compensate companies for damages related to COVID-19

The European Commission has found a €8 billion Austrian scheme to compensate companies for damages related to the coronavirus outbreak to be in line with EU State aid rules.

Under the scheme, undertakings will be entitled to compensation for certain damages suffered as result of the coronavirus outbreak. As notified by Austria, the compensation, in the form of direct grants, can cover a maximum of 75% of fixed costs incurred during a limited period of three months, with a maximum amount of €90 million per group.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €8 billion scheme enables Austria to compensate businesses of all sectors at least in part for the damages suffered due to the coronavirus outbreak. We are working closely with Member States to find workable solutions to support companies in these difficult times, in line with EU rules.”

The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or sectors for damage directly caused by exceptional occurrences.

The Commission considers that the coronavirus outbreak qualifies as such an exceptional occurrence, as it is an extraordinary, unforeseeable event having a significant economic impact. As a result, exceptional interventions by the Member States to compensate for the damages linked to the outbreak are justified.

The Commission therefore concluded that the scheme is in line with EU State aid rules.