Directives on the granting of subsidies to cover fixed costs by the COVID-19 Finanzierungsagentur des Bundes GmbH (COFAG)

Oct 12, 2020 Benn-Ibler Rechtsanwälte

On the 25 May 2020, the regulation of the Federal Minister of Finance pursuant to § 3b (3) of the ABBAG Act (Bundesgesetz über die Einrichtung einer Abbaubeteiligungsaktiengesellschaft des Bundes) concerning guidelines for the granting of subsidies to cover fixed costs by the COVID-19 Finanzierungsagentur des Bundes GmbH (COFAG) was published.

§ 3b (3) of the ABBAG Act constitutes the domestic legal basis according to which the Federal Minister of Finance, in agreement with the Vice-Chancellor, must issue by decree guidelines for the granting of financial measures pursuant to § 2 (2) (7) of the ABBAG Act which are necessary to ensure the solvency and bridging of liquidity difficulties of companies in connection with the spread of COVID-19 and the economic effects caused thereby.

The Directives provide for financial measures in the form of grants to cover fixed costs, which are equivalent to aid under Article 107(2)(b) TFEU (Treaty on the Functioning of the European Union). Accordingly, the European Commission may consider aid to certain enterprises or aid schemes for sectors to be compatible with the internal market. Grants to cover fixed costs must be applied for by 31.8.2021. To ensure rapid liquidity, payment can be applied for in installments since 20.5.2020. The overall framework for such grants is set at EUR 8 billion.

BGBl. II No. 225/2020