April 01
2020
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25th March 2020
Competition & State Aid Covid-19

State aid: Danish scheme to compensate self-employed affected by coronavirus outbreak approved by the Commission

A Danish scheme that partially compensates the self-employed for losses of turnover suffered due to the coronavirus outbreak, in the form of grants worth approximately 1.3 billion euros, has been approved by the Commission under EU State aid rules. The scheme will compensate up to 75% of the expected loss of turnover for the self-employed with a maximum compensation of 3,000 euros per month, and per person, for three months.

The scheme is expected to run until 9 June 2020.

The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which allows State aid to be approved to compensate specific companies or sectors for damages directly caused by exceptional occurrences, which the coronavirus outbreak is considered to be. Moreover, the Commission found that the Danish aid scheme will compensate damages that are directly linked to the coronavirus outbreak, as it would address the economic damage caused by the pandemic in Denmark. It also found that the measure is proportionate, as the foreseen compensation does not exceed what is necessary to make good the damage.

The Commission therefore concluded that the scheme is in line with EU State aid rules.

For more detailed information, read the Commission’s press release here, which gives an overview of the aid measures that can be granted to support specific companies or sectors suffering from the consequences of the coronavirus outbreak, such as under Article 107(2)(b)TFEU / as in this case; under Article 107(3)(c) TFEU – so Member States can help companies cope with liquidity shortages and needing urgent rescue aid, additional measures; and the recently set up State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the coronavirus outbreak, which covers five types of aid.

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