EC approves support of Romanian travel, accommodation and food service companies affected by pandemic

The European Commission approved a plan of 500 million euros (about 2.437 billion lei) to back Romanian companies active in tourism, accommodation and food services as well as travel agencies, in the context of the coronavirus pandemic, according to an EU press release.

The measure was approved according to the temporary frame on state aid.

Public support, which will be under the form of direct subsidies, will cover up to 20% of income losses (or, for certain travel agencies which apply a special regime, the volume of invoices issued for travel services) supported by the beneficiary over January 1- December 21, 2020, compared to the same period of 2019.

The measure is meant to help beneficiaries and solve the need of cash and continue activities during and after the pandemic.

The commission found out that the Romanian plan is according to conditions established in the Provisional frame on state aid: the support will not exceed 1.8 million euros per beneficiary, and the aid will be granted no later than December 31, 2021.

The Commission concluded that the measure is necessary, adequate and proportional to remedy serious disruptions in the economy of a member state, according to article 107, paragraph 3, letter b of the Treaty of EU functioning (TFEU) and conditions of the temporary Frame. Based on that, the Commission approved the measure according to EU norms on state aid.

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