EU expands State Aid Framework - Blümel: Pressure has worked
Today, the EU Commission announced a significant expansion to the existing State aid Framework. The current upper limit of EUR 800,000 (in Austria, for example, the fixed cost subsidy II is being run under this regime) is to be raised to EUR 1.8 million per company. The Framework for loss compensation is also being increased.
"Back in April last year, Austria was the first country to demand an extension to the State aid Framework and greater flexibility. The pressure we have exerted, plus our alliance with other countries, have succeeded. Now, nine months into the crisis, the EU Commission has finally recognized the gravity of the situation. More and more SMEs are coming up against the existing ceilings and would now no longer have access to the State aid they need in order to survive. This expansion means that we can continue to help such companies, secure liquidity and save vital jobs. At a national level, we will now swiftly implement the corresponding adjustments so as to be able to adapt our ongoing aid programmes optimally to the new Framework," explained Finance Minister Gernot Blümel.