The European Commission has approved a €100 million Irish scheme to support the microelectronics-manufacturing sector in the context of Russia's war against Ukraine.
The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.
The purpose of the scheme is to provide financial support to microelectronics-manufacturing companies, which have been particularly affected by the current geopolitical crisis. The measure will consist in aid for additional costs due to exceptionally severe increases in natural gas and electricity prices in the form of direct grants, up to a maximum individual amount of €50 million.
The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.
The Commission found that the Irish measure is in line with the conditions set out in the Temporary Crisis Framework. In particular, the individual aid amount (i) will not exceed 40% of the eligible costs, up to a maximum of €100 million; (ii) cannot lead to an EBITDA for the supported period exceeding 70% of the beneficiary's EBITDA in 2021; and (iii) will be granted no later than 31 December 2023.
The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis and Transition Framework. On this basis, the Commission approved the scheme under EU State aid rules.
Credit: European Commission Daily News