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English Section

EU approves Polish state aid to firms hit by coronavirus

12.05.2020 08:45
The EU executive has approved a Polish plan to offer EUR 450 million worth of state aid to companies hit by the coronavirus.
Margrethe Vestager, Executive Vice-President of the European Commission in charge of competition policy.
Margrethe Vestager, Executive Vice-President of the European Commission in charge of competition policy.Photo: PAP/EPA/STEPHANIE LECOCQ

The European Commission said on Monday it "has approved a EUR 450 million scheme (approximately PLN 2 billion) to support the Polish economy in the context of the coronavirus outbreak."

The European Commission added it was giving the green light to the support under temporary state aid rules it originally adopted in March.

Margrethe Vestager, Executive Vice-President of the European Commission in charge of competition policy, was quoted as saying: "This EUR 450 million Polish scheme—co-financed by EU structural funds—will enable Poland to further enhance access to liquidity by companies in need through the provision of loans and State guarantees on loans covering 100% of the risk in the amount of up to €800,000 per company."

Vestager added that the support "will help businesses active in all sectors to continue their activities during and after the coronavirus outbreak."

The European Commission last month approved Polish state aid to businesses in the form of repayable advances, with a total budget of EUR 16.6 billion (around PLN 75 billion).

Earlier last month the EU executive gave the go-ahead to a Polish loan and guarantee plan aiming to support the economy to the tune of PLN 3.5 billion (around EUR 700 million) amid the coronavirus pandemic.

Poland’s president at the end of March signed into effect a multibillion relief and stimulus package aiming to shore up the economy and shield the nation from the impact of an intensifying coronavirus outbreak.

President Andrzej Duda last month signed into law a measure to offer further support to the nation’s economy amid the COVID-19 lockdown.

Polish lawmakers at the end of last month backed a plan to expand the massive package of measures aiming to protect jobs and businesses from the coronavirus pandemic.

Polish Prime Minister Mateusz Morawiecki in early April unveiled plans to throw a lifeline of at least PLN 100 billion (USD 24 billion, EUR 22 billion) to businesses hit by the coronavirus epidemic.

The Polish prime minister last month called for a “new Marshall Plan” for Europe to aid the continent’s recovery from the coronavirus crisis.

A total of 16,326 people have tested positive for the COVID-19 disease in Poland, with 811 deaths from the coronavirus so far, officials said on Monday afternoon.


Source: PAP, ec.europa.eu