ESA approves changes to Norwegian compensation scheme for companies suffering financial losses

The EFTA Surveillance Authority (ESA) today approved changes to a Norwegian support scheme for companies seeking compensation for financial hardship related to COVID-19. The changes include increasing the threshold for receiving aid and decreasing aid intensity for recipients.

The Temporary Compensation Scheme for Businesses was an important part of Norway’s initial economic response to the COVID-19 pandemic and was first approved by ESA on April 17, 2020 and then extended to several times. On May 21, 2021, the scheme was renewed and extended until October 31, 2021 under the European Commission’s temporary framework for state aid measures to support the economy during the current epidemic of COVID-19.

The Norwegian economy is now recovering and the Norwegian authorities consider that companies will have less incentive to increase their activity if the aid is kept at a high level.

The scheme is therefore modified and the threshold for companies requesting compensation is reduced from 30% loss of turnover to 40% for the period from September 1 to October 31, 2021. The aid intensity of the scheme will be reduced for the same period.

The estimated budget for the program is now NOK 2 billion (€ 200 million), half of its original estimate when it launched in its renewed form in May 2021.

Read the full decision here.


EFTA Surveillance Authority published this content on September 24, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on September 24, 2021 01:31:00 PM UTC.

Source link

Previous Flood insurance costs set to skyrocket for some
Next What to know (and do) if you are listed in ChexSystems