EC OKs the state aid for SMEs in Romania worth EUR 935 M

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The European Commission has announced on Thursday it had Okayed the state aid scheme worth EUR 935 million for Romania to support the companies affected by the coronavirus pandemic, says a EC press release.

The state aid will take the shape of direct grants for the working capital and productive investments and will be co-funded by the European Regional Development Fund.

The funds can be accessed by the active SMEs in certain sectors and to some big companies that have direct connections with eligible SMEs that have been affected by the COVID-19 pandemic. The aim of the action is to provide these companies with liquidity to be able to continue their activities, to kick off investments and to maintain jobs.

The direct grants will not exceed EUR 100,000 per each company that is operating in the primary agricultural production, EUR 120,000/per company in the fishing sector and EUR 800,000/per each active company in all the other sectors.

The state aid scheme will be operational until December 31, 2020.

Romania is also eligible tor receive more EU funds within the SURE instrument designed to preserve employment across the EU. On August 24,  the European Commission has presented proposals to the Council for decisions to grant financial support of €81.4 billion to 15 Member States under the SURE instrument. SURE is a crucial element of the EU’s comprehensive strategy to protect citizens and mitigate the severely negative socio-economic consequences of the coronavirus pandemic. It is one of the three safety nets agreed by the European Council to shield workers, businesses and countries. Romania is entitled to loans worth EUR 4 billion under this scheme.

Once the Council approves these proposals, the financial support will be provided in the form of loans granted on favourable terms from the EU to Member States. These loans will assist Member States in addressing sudden increases in public expenditure to preserve employment. Specifically, they will help Member States to cover the costs directly related to the financing of national short-time work schemes, and other similar measures they have put in place as a response to the coronavirus pandemic, in particular for the self-employed.

SURE can provide financial support of up to €100 billion in total to all Member States. The proposals put forward by the Commission to the Council for decisions to grant financial support amount to €81.4 billion and cover 15 Member States.

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