EU Approves €14.3 Million Compensation to Zagreb International Airport for Damages Caused by COVID-19
According to the EU Commission, such a measure is aimed at compensating the airport operator for the damage incurred during the period from March 19 to June 30 of last year due to the Coronavirus pandemic, AtoZSerwisPlus.com reports.
The authority has also pointed out that Zagreb International Airport suffered a major drop in aircraft and passenger traffic during that time, which resulted in huge revenue losses. Thus, this financial support will count as the cancellation of the concession fees.
“The Commission assessed the measure under Article 107(2) (b) TFEU, which enables the Commission to approve State aid measures granted by the Member States to compensate specific companies or sectors for the damage directly caused by exceptional occurrences, such as the coronavirus outbreak,” the statement issued by the EU Commission reads.
As the Commission explains, the measure is proportional since the compensation does not exceed what is necessary to correct the damage.
Previously, the Commission also approved another Croatian scheme worth €85.3 million in support of large companies in the civil aviation sector affected by COVID-19. As a result, based on this aid, public support would take the form of recapitalisation through the issuance of ordinary shares.
In addition, in June, the EU Commission also approved modifications to an existing Croatian scheme that supports companies active in the maritime, transport, travel, and infrastructure sectors in the context of the Coronavirus pandemic.
At the time, Croatia announced changes to the existing scheme, including a general increase in the budget of about €111.8 million but also an expansion of financial intermediaries based on the plan to cover banks, as well as all credit and financial institutions, including here the leasing companies.
Moreover, the Commission had concluded that such assistance would not exceed the amount of €2.3 million per beneficiary and it was granted on June 30 of this year.
After reaching the granting of this measure, the Commission said that the amended effort remains necessary, appropriate, and proportional to correct a serious concern in the economy of a Member State, especially for Croatia in this case.