EU Cohesion policy: €160 million to modernize the rail transport in Czechia

The European Commission has approved a €7.5 million Czech scheme to support undertakings located in the City of Pilsen affected by the coronavirus outbreak. The scheme was approved under the state aid Temporary Framework. The aim of the aid it to remedy a serious disturbance in the Czech economy and help businesses and organisations located in Pilsen to preserve economic continuity. It also complements other government support programmes (‘COVID Rent Programme’, ‘COVID-SPORT Programme’ and ‘ANTIVIRUS Programme’).

The scheme is open to beneficiaries active in all sectors apart from the financial institutions. It consists of the following sub-measures: Rent discount and deferral of rent payments for non-residential City-owned premises, due date deferral for payments under lease of agricultural land and land for development activities, direct grants for publicly co-funded organizations established or founded by the City of Pilsen and for sports clubs and cultural organizations not established by the City of Pilsen.

The Commission found that the Czech scheme is in line with the conditions set out in the Temporary Framework. In particular, the total aid received by beneficiaries will not exceed €800,000 per company (€120,000 per undertaking active in the fishery and aquaculture sector or € 100,000 per undertaking active in the primary production of agricultural products. 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.

On this basis, the Commission approved the measure under EU state aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.58430 in the state aid register on the Commission’s competition website once any confidentiality issues have been resolved.

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