State Aid: Commission Approves Danish Guarantee Scheme For SMEs Affected By Coronavirus Outbreak

The European Commission has found a DKK 1 billion (approx. €130 million) Danish guarantee scheme for small and medium-sized enterprises (SMEs) affected by Coronavirus outbreak to be in line with EU State aid rules. The schemes were approved under the State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak adopted by the Commission on 19 March 2020. The Commission approved the Danish scheme within 48 hours from the entry into force of the Framework.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: “SMEs are the backbone of our economy. We need to make sure that they can overcome the extremely difficult situation triggered by the Coronavirus outbreak. The Danish guarantee scheme for SMEs is an important contribution to reaching this objective. Today, we have approved this measure under the new State aid Temporary Framework, within less than 48 hours from its adoption. We continue working with Member States to ensure timely, coordinated and effective action.”

The Danish support measures

Denmark notified to the Commission a guarantee scheme for SMEs affected by the Coronavirus outbreakunder the Temporary Framework. It has a budget of DKK 1 billion (approx. €130 million).