European Commission approves €500 million Irish scheme to support investment towards a sustainable recovery
The European Commission has approved a €500 million Irish investment support scheme aimed at incentivising companies to accelerate or expand capital investment in Ireland, including in relation to green and new digitalisation technologies, for greater competitiveness and productivity. The scheme was approved under the State aid Temporary Framework.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €500 million scheme will help Ireland set the path for a faster and more sustainable recovery and represents an important step to bridge the investment gap left behind by the coronavirus crisis. We continue working in close cooperation with Member States to ensure that national support measures to kick-start and crowd-in private investment can be put in place as quickly and effectively as possible, in line with EU rules.”
Under the scheme, the aid will take the form of direct grants and will be used to finance investments in tangible and intangible assets as a stimulus to overcome an investment gap accumulated in the economy as a result of the coronavirus pandemic.
The measure will be open to companies active in sectors such as manufacturing, information and communication, scientific and technical activities. The measure is expected to benefit up to 500 companies.
The Commission found that the Irish scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid amount per beneficiary will not exceed 1% of the total budget; (ii) the aid will benefit investments in tangible and intangible assets but not financial investments; (iii) the aid will not exceed the maximum aid intensities set out in the Temporary Framework; and (iv) the public support will be granted no later than 31 December 2022.
The Commission concluded that the Irish measure is necessary, appropriate and proportionate to foster investment for certain economic activities of importance for a sustainable recovery, in line with Article 107(3)(c) TFEU.
On this basis, the Commission approved the aid measure under EU State aid rules.
