EU Commission approves 10 billion euro German pandemic state aid

EU flag lies at Schuman square on eve of Europe Day in Brussels
FILE PHOTO: A large European Union flag lies at the centre of Schuman square, outside the European Commission headquarters, on the eve of Europe Day, commemorating the declaration made by Robert Schuman in 1950, in Brussels, Belgium, May 8, 2021. REUTERS/Yves Herman

May 28, 2021

BRUSSELS (Reuters) – The European Commission approved on Friday a 10 billion euro German scheme to compensate companies for damages suffered due to coronavirus outbreak, the EU executive said.

The compensation period will depend on whether restrictions are in place in the period between 16 March 2020 and 31 December 2021. The compensation, in the form of direct grants, can cover up to 100% of the actual damage incurred by the beneficiaries during the eligible period, and can only be granted after damage is incurred.

“The Commission considers that the coronavirus outbreak qualifies as such an exceptional occurrence, as it is an extraordinary, unforeseeable event having a significant economic impact. As a result, exceptional interventions by the Member States to compensate for the damages directly linked to the outbreak are justified,” it said.

(Reporting by Jan Strupczewski)