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EU OKs Danish €1.34B Scheme To Support Companies Affected By COVID-19

By  |  November 22, 2020
EU COVID

The European Commission has approved Danish plans to set up a fund with a target size of up to DKK 10 billion (approximately €1.34 billion) to recapitalise large enterprises affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework.

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    Executive Vice-President Margrethe Vestager, in charge of competition policy, said “The DKK 10 billion Danish fund will provide further support to large enterprises affected by the coronavirus outbreak by facilitating their access to finance. The scheme ensures that the State is sufficiently remunerated for the risk taxpayers assume and that there are incentives for the State to exit as soon as possible. The support also comes with strings attached, including a ban on dividends, bonus payments as well as further measures to limit distortions of competition. We continue to work in close cooperation with Member States to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules.”

    Denmark notified the Commission under the Temporary Framework a fund with a target size of up to € 1.34 billion to provide capital support to large enterprises affected by the coronavirus outbreak.

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