Europe approves Greek government billion euro ‘virus’ bailout

The Greek government’s proposed bailout package for businesses during the pandemic was approved by the European Commission on Tuesday, 7 April.

Specifically, the Commission approved a one-billion-euro aid scheme proposed by Greece to support companies affected by the coronavirus outbreak.

The scheme is open to companies active in all sectors and applies to the whole territory of Greece. It is targeted at companies having temporary financial difficulties due to the coronavirus outbreak, as demonstrated by a significant reduction of their activity. The scheme will help to ensure that liquidity remains available in the market, to counter the damage inflicted by the outbreak and to preserve the continuity of economic activity during and after the outbreak

"This 1-bln-euro Greek repayable advances scheme will help to ensure there is sufficient liquidity in the Greek economy. It ensures that the companies which are most impacted by the coronavirus outbreak will continue their economic activity during and after the crisis. The European Commission will continue to work closely with the member states to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules," said Commission Executive Vice-President Margrethe Vestager.

The Commission found that the Greek measure is in line with the conditions set out in the Temporary Framework. In particular: (i) the repayable advances scheme is confined only to solvent enterprises, (ii) the repayable advances will be granted until June 2020, (iii) is proportionate to remedy the consequences of the serious disturbance caused by the coronavirus outbreak, and (iv) the aid amounts do not exceed the levels foreseen by the Temporary Framework.

The Commission concluded that the 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.