The measure Apoiar.PT.Madeira will provide non-refundable support to the companies most affected by the pandemic in 2020.
The European Commission on Monday approved 22 million euros of state aid from Portugal to support micro, small and medium enterprises (SMEs) on the island of Madeira affected by the pandemic, with a financial loss of more than 25% by 2020.
The community executive said in a statement that he has approved “a Portuguese plan to support micro, small and medium-sized enterprises with headquarters and activities in the Madeira region in the context of the coronavirus outbreak”.
The public assistance is called “Apoiar.PT.Madeira”, in the form of direct subsidies, and will be provided to “companies operating in the sectors most affected by the economy” generated by the “covid-19 pandemic” and “affected by Compared with the same period in 2019, the turnover in 2020 will drop by at least 25%.”
According to Brussels, this Portuguese state aid “meets the conditions set out in the EU’s interim framework” because the amount of this aid does not exceed 1.8 million euros, and the aid is valid until December 31, 2021.
The problem lies in Europe’s provisional State Aid Framework, which came into effect in mid-March 2020 and remains in force until the end of the year. The framework extends the support member states can provide for their economies to the scope normally prohibited by EU competition rules, transforming it into a belt Loans with state guarantees, grants, etc.
“The committee concluded that the measure [portuguesa] The European Commission concluded: “It is necessary to fully and proportionally correct the serious economic turbulence in member countries.”