The measure was approved under the State aid Temporary Framework. Under the scheme, the aid will take the form of direct grants. Eligible beneficiaries will be entitled to receive a single one-off payment equal to the value of 5% of their VAT-exclusive turnover in 2019, up to a maximum of €25,000.
In order to be eligible, companies must be able to demonstrate that for any consecutive six months during the period between 12 March 2020 and 30 September 2021 their average monthly turnover was not exceeding 25% of their average monthly turnover in 2019.
The purpose of the measure is to mitigate the sudden liquidity shortages that these companies are facing due to the coronavirus outbreak and the restrictive measures that the Irish government had to implement to limit the spread of the virus.
The Commission found that the Irish 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 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 of 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.100526 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.
- Publication date
- 1 December 2021
- Representation in Ireland