State aid: Commission approves €890,000 Cypriot scheme to support cheesemakers in the context of the coronavirus pandemic

The scheme was approved under the State Aid Temporary Framework. Under the scheme, the public support will take the form of direct grants up to €200,000 per beneficiary. The measure aims at mitigating the liquidity shortages that the beneficiaries are facing and at addressing part of the losses they incurred due to the coronavirus pandemic and the restrictive measures that the Cypriot authorities had to implement to limit the spread of the virus, in particular those applied in the catering sector. The scheme will be open to all companies active in the Halloumi cheese production and storage. The Commission found that the Cypriot scheme is in line with the conditions of 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 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 scheme 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.102885 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.