European Commission Approves 3 Billion Polish Scheme to Support Companies in Polish Gas Market

The European Commission has approved a 3 billion Polish scheme to support companies active in the Polish gas market in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission to recognize the EU economy's serious disturbance. The Polish measure will provide subsidised loans to small and medium-sized enterprises (SMEs) and large companies, administered by Bank Gospodarstwa Krajowego (BGK). The aid will be granted based on the companies' average total annual turnover or energy costs incurred.

Key Takeaways:

• The Polish scheme will provide 3 billion euros to support companies active in the Polish gas market.
• The scheme will benefit small and medium-sized enterprises (SMEs) and large companies, excluding credit institutions or other financial institutions.
• The aid will be granted and administered by Bank Gospodarstwa Krajowski (BGK).
• The individual aid amount per beneficiary will be equal to either 15% of its average total annual turnover or 50% of the energy costs incurred over a 12-month period.
• Exceptionally, beneficiaries in sectors particularly affected by the crisis can receive increased loan amounts, subject to justification.
• The scheme's conditions include a loan maturity of six years, reduced interest rates, and support granted no later than 31 December 2023.
• The Commission approved the scheme based on Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU) and the conditions set out in the Temporary Crisis Framework.

Statistics:

• 3 billion euros: The total amount of the Polish scheme to support companies in the Polish gas market.
• 15%: The aid amount per beneficiary equal to its average total annual turnover.
• 50%: The aid amount per beneficiary based on energy costs incurred over a 12-month period.
• 23 March 2022: The date the Commission adopted the State aid Temporary Crisis Framework.
• 20 July 2022: The date the Commission amended the Temporary Crisis Framework.
• 28 October 2022: The date the Commission further amended the Temporary Crisis Framework.
• 31 December 2023: The deadline for support to be granted under the scheme.

Sources:

• "The European Commission has approved a 3 billion scheme under the State aid Temporary Crisis Framework in order to support companies active in the Polish gas market, in the context of Russia's war against Ukraine." - Euclid Infotech Pvt. Ltd.
• "The Commission considered that the proposed aid measure is in line with the conditions set out in the Temporary Crisis Framework." - Euclid Infotech Pvt. Ltd.
• "The Commission found that the aid measure will be 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 Crisis Framework." - Euclid Infotech Pvt. Ltd.