The European Commission has approved the 50 million euro (about HUF 18 billion) Hungarian program, which is intended to provide support to companies affected by the coronavirus epidemic. The Commission made its decision on the basis of its temporary framework for state aid related to the coronavirus epidemic.
The program includes the following two measures:
Support in the form of direct grants and support for unfunded fixed costs of companies whose sales revenue has decreased by at least 30% in the period relevant to the eligibility for support (i.e. the period from 1 March 2020 to 31 December 2021 or part of it) 2019 same compared to its period.
Within the framework of the program, any business, regardless of size and sector, can receive support, with the exception of companies operating in the financial sector. The measures are aimed at making it easier for the beneficiaries to cover their liquidity needs and continue their activities during and after the epidemic.
The Commission found that the Hungarian program is in line with the conditions set out in the temporary state aid framework.
Accordingly, the amount of support provided under the first measure will not exceed EUR 225,000 per enterprise for enterprises engaged in the primary production of agricultural products, EUR 270,000 for enterprises operating in the fishing and aquaculture sector, and EUR 1 for enterprises operating in all other sectors. 800,000 euros.
The second measure also meets the conditions, as the amount of aid will not exceed EUR 10 million per enterprise, and the aid intensity will not exceed 90% of the uncovered fixed costs of micro and small enterprises, and 70% of the uncovered fixed costs of other enterprises through.
In the case of both measures, the beneficiaries can receive the subsidies until December 31, 2021 at most. The Commission came to the conclusion that the Hungarian program is necessary, appropriate and proportionate to manage the economic effects of the coronavirus epidemic.
Accordingly, it approved the measures in accordance with EU rules on state aid.
Source: euronews.com
Featured photo: John Thys/AP
