The European Commission has approved a Hungarian scheme to support the agri-food value chain in the context of the coronavirus outbreak, which is expected to mobilise at least approximately €314 million (approx. HUF 111 billion). The scheme will be open to small and medium-sized enterprises (SMEs) active in all sectors, but is aimed at the wider agri-food value chain. The objective of the measure is to provide those companies with financial means to cover their immediate working capital and investment needs, and help them maintain their activities during these difficult times.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This Hungarian guarantee scheme, expected to mobilise at least €314 million, will support the Hungarian agriculture and food industry, as well as the wider agriculture and bio-economy value chain. This measure will improve the liquidity of businesses and help them continue their activities in these difficult times. We continue working closely with Member States to ensure that national support measures can be put in place quickly and effectively, in line with EU rules.”
The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020. The Temporary Framework enables Member States to combine support measures, with the exception of loans and guarantees for the same loan and exceeding the thresholds foreseen by the Temporary Framework.
The Framework allows Member States to provide the following types of aid:
- Direct grants, equity injections, selective tax advantages and advance payments
- State guarantees for loans taken by companies
- Subsidised public loans to companies
- Safeguards for banks that channel State aid to the real economy
- Public short-term export credit insurance
- Support for coronavirus related research and development (R&D)
- Support for the construction and upscaling of testing facilities
- Support for the production of products relevant to tackle the coronavirus outbreak
- Targeted support in the form of deferral of tax payments and/or suspensions of social security contributions
- Targeted support in the form of wage subsidies for employees
More detailed information on the Temporary Framework can be found here.
The full original press release can be found here in the Commission Press Corner.
All the way from the sunny Portuguese island of Madeira, Promoting Enterprise is bringing you a story from a former European Enterprise Promotion Awards (EEPA) nominee…Madeira Vintners!
Over the last five years, the all-female team at MADEIRA VINTNERS have been working to establish their Madeira wine brand, the first Madeira wine firm to be founded in over 80 years . The team is not only nationally innovative, but unusual across the sector. The first harvest in 2012 helped with Madeiran grape distribution, producing added value for Madeiran grape producers and vineyards. As an isolated EU territory, the success of this venture, which saw more than 100% increase in sales in 2016-2017, is important for the island’s agribusiness sector, which is a key source of revenue after tourism.
Since competing in the 2017 edition of EEPA, the project has gone on to be interviewed by Euronews about their work in the wine production sector. Watch their interview below and visit their website for more information on this innovative project!