The EFTA Surveillance Authority approves increased compensation to Norwegian businesses

COVID-19 pandemic: ESA approves increased compensation to Norwegian businesses*

The EFTA Surveillance Authority (ESA) has today approved amendments to a temporary compensation scheme for companies in Norway. This entails stepping up the aid intensity for January and February 2021, including an estimated budget increase of NOK 125 million (EUR 12.4m). The deadline to apply for compensation under the scheme has also been extended.

The Norwegian government has decided to increase financial support to businesses in response to the continued impact of the pandemic and the related containment measures.

The temporary compensation scheme for companies was initially approved by ESA on 17 April 2020. It was set up to prevent bankruptcies and job losses resulting from enterprises’ sudden inability to cover their operating costs. The scheme formed an important part of Norway’s initial economic response to the pandemic and compensated companies in Norway that suffered substantial losses in turnover in the period 1 March 2020 to 31 May 2020.

The scheme was later prolonged to cover the period up until 31 August, and the amount of aid was adjusted as restrictions loosened and the economic environment improved. On 15 December 2020, ESA approved a prolongation of the scheme to cover losses during the period from 1 September 2020 to 28 February 2021. The estimated budget for that period was NOK 5 billion (EUR 470m).

Today’s decision increases the aid intensity for January and February 2021 with an additional NOK 125 million (EUR 12.4m) allocated to the scheme’s budget. The deadline to apply for aid for the period from 1 September 2020 to 28 February 2021 has been extended to 15 June 2021.

*This is the original title of the press release. The title above has been amended in order to match the e-Competitions format. Individual authors are welcome to provide original independent commentaries on the case law. Articles are subject to approval by the Board of e-Competitions Bulletin before publication based on the Editorial Policy (click here).

PDF Version

Author

Quotation

EFTA Surveillance Authority, The EFTA Surveillance Authority approves increased compensation to Norwegian businesses, 10 March 2021, e-Competitions Competition Law & Covid-19, Art. N° 99633

Visites 172

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues