EU OKs Modification Of Spanish Aid Including €10B Budget Increase

The European Commission has found the modification of three existing Spanish schemes to support the economy in the context of the coronavirus outbreak to be in in line with the State aid Temporary Framework.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said, “The amendments we have approved today will help Spanish companies preserve economic activity in these difficult times by adapting and enhancing existing Spanish schemes already in force. For example, Spain has made use of the possibility under the State aid Temporary Framework to first grant repayable instruments that can be converted into grants, if it becomes necessary. 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.”

The three modified and prolonged existing Spanish schemes are:

• The first Spanish “umbrella” scheme, providing limited amounts of aid, guarantees on loans, subsidized loans and support for uncovered fixed costs to companies and the self-employed affected by the coronavirus outbreak, which was approved by the Commission on April 2, 2020 and subsequently amended on April 24, 2020, October 22, 2020, December 11, 2020, and February 19, 2021;
• The second Spanish “umbrella” scheme, providing support for research and development, testing and production of coronavirus relevant products as well as wage subsidies and deferrals of tax and social security contributions, which was approved on 24 April 2020 and prolonged for the first time on December 23, 2020; and
• The Spanish recapitalization fund, which was approved on 31 July 2020 and prolonged for the first time on December 23, 2020.

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