The European Commission has approved a €9.5 million Irish scheme to support not-for-profit regional, county and local entities affected by the coronavirus outbreak and the restrictive measures that the Irish government had to implement to limit the spread of the virus.
The scheme was approved under the State aid Temporary Framework.
Under the scheme, which goes under the name ‘Regional Enterprise Transition Scheme', the aid will take the form of direct grants of minimum €50,000 and up to maximum €1.8 million per beneficiary. The aid will be granted to not-for-profit regional, county and local entities for projects, to be selected through a competitive procedure, which will contribute to the viability and competitiveness of small and medium-sized enterprises.
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 the limits per beneficiary set by the Temporary Framework; and (ii) will be granted no later than 31 December 2021. 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 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.63264 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.