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Luxembourg State Aid Scheme Approved,
by Ulrika Lomas, Tax-News.com, Brussels
Friday, March 06, 2009
The European Commission has, under the state aid rules of the EC Treaty, authorised
the first in a series of aid measures for businesses in Luxembourg to
deal with the current economic crisis. The measure will enable Luxembourg to
grant until December 31, 2010 aid of up to EUR500,000 to businesses likely to
have a structural impact on the national or regional economy.
"This measure will give a shot in the arm to businesses affected by the
current economic situation without causing undue distortions of competition.
The effectiveness of the Luxembourg authorities’ response has enabled
the Commission to come to a decision very quickly," said Competition Commissioner
Neelie Kroes.
The scheme meets the conditions detailed within the Commission’s temporary
framework, which gives Member States greater flexibility in granting state aid
and providing businesses with improved access to financing during the economic
and financial crisis. The scheme proposed by Luxembourg is compatible with Article
87(3)(b) of the EC Treaty, which permits aid to remedy any serious disturbance
in the economy of a Member State.
The scheme is the first measure authorised for Luxembourg under the new temporary
framework for state aid.
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