Brussels approves €1 bn fund for pandemic-hit Spanish firms

Companies in all sectors, except those in the financial sector, are eligible for the scheme unless they have already received aid under another recovery fund. [EFE/EPA/YVES HERMAN / POOL]

The European Commission has approved Spain’s proposal to set up a €1 billion recapitalisation fund to help the recovery of Spanish companies affected by the pandemic, EURACTIV’s partner EUROEFE reported.

The scheme “will enable Spain to support companies affected by the coronavirus outbreak by facilitating their access to finance in these difficult times,” Commission Executive Vice-President Margrethe Vestager said in a statement.

The fund will invest through debt and equity instruments to provide capital support to the most affected companies.

Companies in all sectors, except those in the financial sector, are eligible for the scheme unless they have already received aid under another recovery fund. Only companies that were not considered in financial difficulty before 31 December, 2019 are eligible for the aid.

“The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of Spain,” the Commission said. 

[Edited by Paula Kenny/Josie Le Blond]

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