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Press release4 April 2022Representation in Cyprus

State aid: Commission approves €3 million Cypriot scheme to support companies and the self-employed of certain sectors affected by the coronavirus pandemic

The European Commission has approved a €3 million Cypriot scheme to support companies and the self-employed that had to suspend their activities due to the coronavirus pandemic and the restrictive measures in place to limit the spread of the virus.

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The scheme was approved under the State aid Temporary Framework. Under the scheme, the aid will take the form of direct grants. The measure will be open to companies and the self-employed active in certain sectors such as nightclubs, organisation of conventions and trade shows, support activities to the performing arts and theatres. The eligible beneficiaries that are registered for VAT will be entitled to receive direct grants of up to €60,000. Theatres, which are not registered for VAT, will be entitled to receive direct grants equal to 50% of the amount of de minimis support already granted under a scheme established in 2021. The purpose of the new scheme is to address the liquidity needs of beneficiaries and to help them cover part of their operating expenses. The Commission found that the Cypriot scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €2.3 million per beneficiary; and (ii) will be granted no later than 30 June 2022. The Commission therefore concluded that the measure 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 Framework. On this basis, the Commission approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.102081 in the State aid register on the Commission's competition website.

Details

Publication date
4 April 2022
Author
Representation in Cyprus