Commission approves Cypriot scheme to support sectors affected by pandemic

The European Commission has approved a Cypriot scheme for 3 million euros to support companies and the self-employed that had to suspend their activities due to the coronavirus pandemic and restrictive measures, under the State aid Temporary Framework.

The measures, which will take the form of direct grants, will be open to companies and self-employed people active in certain sectors such as nightclubs, organisation of conventions and trade shows, support activities to the performing arts and theatres. The purpose of the new scheme is to address the liquidity needs of beneficiaries and to help them cover part of their operating expenses.

In particular, eligible beneficiaries that are registered for VAT will be entitled to receive direct grants of up to €60,000. Theatres, which are not registered for VAT, will be entitled to receive direct grants equal to 50% of the amount of de minimis support already granted under a scheme established in 2021.

The Commission found that the Cypriot scheme is in line with the conditions set out in the Temporary Framework since the aid will not exceed €2.3 million per beneficiary and will be granted no later than 30 June 2022.