EU Commission Approves EUR 1 Billion for Hungary

The European Commission has approved a HUF 350 billion (approximately EUR 1 billion) scheme to support the Hungarian economy in the context of the coronavirus outbreak. The support measures available under the scheme will be financed by the EU structural funds.

According to Executive Vice-President Margrethe Vestager, in charge of competition policy, “this EUR 1 billion Hungarian scheme will help Hungarian companies through direct grants, loans and equity measures financed by the European structural funds. In these difficult times, it will support companies suffering from the economic consequences of the coronavirus outbreak. Our work with Member States continues to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules.”

Hungary notified to the Commission under the Temporary Framework a HUF 350 billion (approximately EUR 1 billion) scheme to support companies affected by the coronavirus outbreak through direct grants, loans and equity measures, using EU structural funds for that purpose.

The scheme will be open to all companies, i.e. micro, small and medium-sized enterprises (SMEs) and large companies, which have access to European structural funds and are facing difficulties as a result of the economic impact of the coronavirus outbreak.

The Commission found that the scheme notified by Hungary is in line with the conditions set out in the Temporary Framework. In particular, (i) the support will not exceed EUR 800,000 per company, EUR 100,000 per undertaking active in the primary production of agricultural products, EUR 120,000 per undertaking active in the fishery and aquaculture sector, and (ii) aid cannot be granted to undertakings that were already in difficulty on December 31, 2019.

The Commission therefore concluded that the Hungarian 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 measures under EU State aid rules.