NOTE
8 October 2021
Danish Government response to the urgent consultation on the 6th
amendment of Temporary Framework for State aid measures to sup-
port the economy in the current COVID-19 outbreak
The Danish Government welcomes the Commission’s
proposal to a 6
th
amendment to the Temporary Framework clarifying the Covid-19 state aid
regime for 2022 and 2023.
Since its first adoption in March 2020 the Temporary Framework has been
a very useful tool in order to cope with the negative impact on the economy
and undertakings during the Covid-19 outbreak.
In particular, we welcome the proposal to increase the aid ceiling of the
uncovered fixed cost measures to 12 mil. Euro in order to address the pro-
longed economic effects of the ongoing crisis caused by the long duration
of restrictions and former lockdowns.
Please, find below our comments to the draft 6
th
amendment.
1. Prolongation
The Danish Government accepts a general prolongation of the measures set
out in the Temporary Framework until 30 June 2022 while maintaining the
objective of returning to the normal state aid regime as soon as the situation
allows it.
Furthermore, we agree that it is necessary to enable the conversion of
repayable aid instruments into other forms of aid under section 3.1 and
section 3.12 of the Temporary Framework until 30 June 2023.
2. Section 3.12
–
increased ceiling
We support the proposal for an increase of the aid ceiling in section 3.12 of
the Temporary Framework, which enables targeted support to companies
that experienced significant turnover losses.
In order to meet the requirements of the companies particularly affected by
COVID-19 and the long duration of restrictions and former lockdowns
Denmark advocates for an increase of the aid ceiling of Temporary Frame-
work 3.12 with a minimum of 25 pct. so that the aid ceiling corresponds to