COVID-19: European Commission authorises a Belgian aid scheme for the hotel sector in Brussels
19/10/2020

On 9 October 2020, the European Commission gave the green light for the establishment of a Brussels aid scheme to support the hotel sector (in particular, hotels and aparthotels) in view of the health crisis. This aid scheme, with a budget of EUR 15.8 million, has been approved on the basis of the Temporary Framework on State Aid.

Under the scheme, direct grants of EUR 20,000 to EUR 200,000 will be awarded to beneficiaries to compensate for the loss of income and operating costs incurred. The Brussels-Capital Region has made the granting of these subsidies subject to certain eligibility conditions, such as having an active and non-suspended registration number, having valid certificates for town planning and fire safety on 7 July 2020, or having complied with the obligation to publish annual accounts.

The measure is intended to mitigate the liquidity shortages faced by these companies as a result of the restrictive measures imposed by the government to limit the spread of the virus and to ensure the continuity of their economic activities.

The Commission found the Belgian measure to be in line with the conditions laid down in the Temporary Framework for limited amounts of aid. In particular, the aid (i) cannot be granted to companies that were in difficulty on 31 December 2019, (ii) must not exceed EUR 800,000 per company in Belgium and (iii) will be granted no later than 31 December 2020.

The European Commission recently decided to extend the Temporary Framework until 30 June 2021 (recapitalisation measures can be implemented until 30 September 2021) and to widen its scope. Many more public support measures will be adopted, across all economic sectors, in view of the impact of the health crisis on the economy.

Marguerite Soete, Associate, Brussels

Annabelle Lepièce, Partner, Brussels

Related : CMS Belgium

[+ http://www.cms-db.com]


Click here to see the ad(s)
All articles European Law

Lastest articles European Law

EU Omnibus Directive: what is the impact of the consumer protection reform for traders? Some take...
23/11/2020

Nearly one year ago, the EU Parliament adopted the directive No 2019/2161 (better known as the “Omnibus Di...

Read more

EIOPA outlines approach on product oversight and governance
18/11/2020

EIOPA published a paper on its approach to product oversight and governance requirements for insurance distributors and ma...

EIOPA outlines approach on product oversight and governance Read more

A European passport for crowdfunding
17/11/2020

At last, a European passport for crowdfunding! As from 10 November 2021, it will be possible for both new and existing cro...

A European passport for crowdfunding Read more

The EU digital finance package: unwrapping digitally fit rules for financial services
16/11/2020

The European Commission is eager to accelerate the EU’s digital transition and to ensure EU leadership in the realm ...

Read more

LexGO Network