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Zijne Excellentie de Heer Philippe Goffin
Minister van Buitenlandse Zaken en Europese Zaken
Karmelietenstraat 15
B - 1000 Brussel
Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel. +32 22991111
EUROPEAN COMMISSION
Brussels, 29.9.2020 C(2020) 6791 final
In the published version of this decision,
some information has been omitted,
pursuant to articles 30 and 31 of Council
Regulation (EU) 2015/1589 of 13 July 2015
laying down detailed rules for the
application of Article 108 of the Treaty on
the Functioning of the European Union,
concerning non-disclosure of information
covered by professional secrecy. The
omissions are shown thus […]
PUBLIC VERSION
This document is made available for information purposes only.
Subject: State Aid SA.58299 (2020/N) – Belgium - Covid-19: Aid to the
Flemish airports
Excellency,
1. PROCEDURE
(1) By electronic notification of 6 August 2020, Belgium notified to the Commission
(i) an aid scheme consisting in direct grants (the “scheme” or the “direct grants”)
in favour of the airport operators of the Flemish regional airports1 (the “Flemish
airports” or “the Flemish airport operators”) and (ii) two subsidised loans in
favour of the airport operators of Antwerpen airport (“Antwerp airport”) and
Oostende-Brugge airport (“Ostend airport”) (together the “Measures”), under the
Temporary Framework for State aid measures to support the economy in the
current COVID-19 outbreak, as amended (“the Temporary Framework”).2
1 The Flemish airports are: the airport of Antwerpen; the airport of Oostende-Brugge; and the airport of
Kortrijk-Wevelgem.
2 Communication from the Commission - Temporary framework for State aid measures to support the
economy in the current COVID-19 outbreak, OJ C 91I, 20.3.2020, p. 1, as amended by
Communication from the Commission C(2020) 2215 final of 3 April 2020 on the Amendment of the
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(2) Following requests for information sent by the Commission on 25 August and on
15, 16 and 24 September 2020, Belgium supplemented and amended its
notification on 8, 9, 16, 23 and 25 September 2020.
(3) Belgium exceptionally agrees to waive its rights deriving from Article 342 of the
Treaty on the Functioning of the European Union (hereinafter “TFEU”), in
conjunction with Article 3 of Regulation 1/19583 and accepts to have this
Decision adopted and notified in English.
2. DESCRIPTION OF THE MEASURES
2.1. The COVID-19 outbreak in Belgium and its negative impact on the
Flemish airports
(4) On 4 February 2020, the first case of the infectious disease SARS-CoV-2
(COVID-19) was reported in Belgium.4
(5) As other countries did, in response to the COVID-19 outbreak, Belgium took
sequential mitigation measures (“containment measures”) to prevent the spread of
the COVID-19 virus in the country.
(6) On 13 March 2020, the Member State declared the federal phase of the national
emergency plan,5 by prohibiting all private and public activities of social,
recreational and sporting nature.
(7) On 18 March 2020, the Federal Government tightened the measures it had already
imposed6 and introduced nationwide contact and movement limitations. The
Temporary Framework for State aid measures to support the economy in the current COVID-19
outbreak, OJ C 112I , 4.4.2020, p. 1; by Communication from the Commission C(2020) 3156 final of 8
May 2020 on the Amendment of the Temporary Framework for State aid measures to support the
economy in the current COVID-19 outbreak, OJ C 164, 13.5.2020, p. 3; and by Communication from
the Commission C(2020) 4509 final of 29 June 2020 on the Third Amendment of the Temporary
Framework for State aid measures to support the economy in the current COVID-19 outbreak, OJ C
218, 2.7.2020, p. 3.
3 Regulation No 1 determining the languages to be used by the European Economic Community, OJ 17,
6.10.1958, p. 385.
4 Source: the website of the Belgian government relating to COVID-19 (https://www.info-
coronavirus.be/en/).
5 Ministerial Decree of 13 March 2020 proclaiming the federal phase for the coordination and
management of the coronavirus COVID-19 crisis,
http://www.ejustice.just.fgov.be/eli/besluit/2020/03/13/2020030302/staatsblad.
6 Ministerial Decree of 18 March 2020 on urgent measures to contain the spread of the coronavirus
COVID-19, http://www.ejustice.just.fgov.be/eli/besluit/2020/03/18/2020030331/staatsblad (link to the
Dutch text; clicking on ‘Beeld van de publicatie’ provides a PDF version of the official Dutch and
French text). That Ministerial Decree was later repealed by the Ministerial Decree of 23 March 2020
on urgent measures to contain the spread of the coronavirus COVID-19, which, however, contains the
same measures, http://www.ejustice.just.fgov.be/eli/besluit/2020/03/23/2020030347/staatsblad (link to
the Dutch text; clicking on ‘Beeld van de publicatie’ provides a PDF version of the official Dutch and
French text).
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Federal Government issued a worldwide travel warning requiring citizens to
refrain from unnecessary journeys.
(8) Due to the various restrictive measures taken at national level in relation to the
free movement of people domestically and internationally, the airlines operating
at the Flemish airports gradually reduced their scheduled flights as of March 2020
and finally suspended all scheduled flights. As a result of the containment
measures, passenger traffic at Antwerp airport decreased by approximately 99.6%
in April 2020, 95.6% in May 2020 and 90.8% in June 2020 as compared to the
same months in 2019. Ostend airport recorded a fall in passenger traffic of 99.3%
in April 2020, 98.5% in May 2020 and 96.1% in June 2020 as compared to the
same months in 2019.7
(9) On 15 June 2020, Belgium withdrew its travel warning requiring citizens to
refrain from unnecessary journeys outside Belgium (see recital (7)) for travels
within Europe. However, Belgium maintained a travel ban for the rest of the
world until at least 31 August 2020 in an effort to contain the coronavirus
pandemic. Moreover, on 4 September 2020, the Federal Public Service Foreign
Affairs again prohibited non-essential travel from Belgium to Spain, which had a
significant impact on Antwerp and Ostend airports.8
2.2. The structure of the Flemish airports
(10) Since 1988, the Flemish Region has been the owner of the airports situated on its
territory and responsible for their management. The Flemish Decree of 10 June
2008 introduced a new airport management structure for the Flemish airports,
known as the “LOM-LEM” structure. In particular:
– the “LOM” (Luchthavenontwikkelingsmaatschappij, i.e. the airport
development company) is a public entity, which is 100% held by the Flemish
Region and is the lessee of the airport infrastructure. The LOM is responsible
for the availability and extraordinary maintenance of the airport infrastructure
according to the requirements imposed by ICAO, EASA and environmental
authorities. There is one LOM per airport;
– the “LEM” (Luchthavenexploitatiemaatschappij, i.e. the airport operating
company) is the private airport operator responsible for the commercial
operation of the airport. The LEM provides the ordinary maintenance and all
investments necessary for the economic and commercial development of the
airport.
(11) Since 2014 the airports of Antwerp and Ostend have been managed by the two
independent public entities, the “LOM Antwerpen” and the “LOM Oostende-
Brugge” (together the “LOMs”), while the “LEM Antwerpen” and the “LEM
Oostende-Brugge” (together the “LEMs”) have been operating the two airports
from a commercial point of view. The Belgian authorities stated that the LEMs
are two subsidiaries of a French private company, EGIS Projects S.A. (“EGIS”),
7 Source: Belgian authorities, submission of 6 August 2020.
8 See information available at https://diplomatie.belgium.be/en (last access on 11 September 2020).
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which received a 25-year concession following a public tender procedure carried
out between December 2009 and July 2013.
(12) The Belgian authorities specified that the LOM-LEM management structure has
not yet been implemented for the airport of Kortrijk-Wevelgem (“Kortrijk”),
which is managed by the public limited company Internationale Luchtaven
Kortrijk-Wevelgem (“NV ILKW”).9
2.3. Objective of the Measures
(13) The containment measures set out in section 2.1 have severely jeopardized the
economic and financial situation of the Flemish airports, which have suffered
from a drastic reduction of their revenues. As those airports mostly base their
business on professional and leisure travel, the ban on non-essential air travel in
force as of 18 March 2020 has affected them severely. In addition, as travel
throughout Europe is still impeded by local travel restrictions in place in
destination countries, passenger traffic is expected not to return in the coming
months to the levels seen prior to the outbreak of COVID-19.
(14) Based on the forecasts of passenger traffic in Europe developed by Airport
Council International (ACI),10 the LEMs have estimated the financial impact of
the pandemic crisis for financial year 2020. Considering the average value
between the optimistic scenario and the pessimistic scenario as described in the
ACI report, the forecast assumes that passenger traffic will evolve as set out in
Table 1:
Table 1 Average estimate for the evolution of passenger traffic for Antwerp
and Ostend airports based on ACI’s forecasts
04/20 05/20 06/20 07/20 08/20 09/20 10/20 11/20 12/20
0% 0% 0% 28% 43% 59% 63% 85% 80%
(15) Based on the forecasts set out in Table 1, compared to 2019, this year the LEM
Antwerpen expects a turnover decrease of EUR […]11 and the LEM Oostende-
Brugge expects a turnover decrease of EUR […].12 This means, considering both
LEMs together, a turnover decrease of […] % compared to the turnover of 2019.
(16) According to the Belgian authorities, the LEMs are not able to absorb the
financial impacts of the COVID-19 crisis in terms of liquidity. In particular, the
9 The Flemish Region holds 33% of the shares, while other shareholders are local public authorities,
notably an intermunicipal cooperation agency called Leiedal and the provincial development company
of the Province of West-Flanders.
10 Airports Council International – Europe, COVID-19 & AIRPORTS – Passenger traffic and revenue
impacts, Updated Forecast (27 April 2020).
11 The LEM Antwerpen expects an EBT of EUR – […] in 2020.
12 The LEM Oostende-Brugge expects an EBT of EUR – […] in 2020.
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annual reports of the LEMs on 31 December 2019 show that they have a negative
working capital,13 thus they do not have reserves to withstand the expected losses.
(17) The objective of the Measures is to partially mitigate the negative economic
consequences of the COVID-19 crisis on the Flemish airports, which represent
essential gateways to the territory of the Flemish Region and fulfil a strategic
function for the whole Flemish economy.
(18) More particularly, the airports of Antwerp and Ostend contribute largely to the
regional economy and generate economic added value and employment (see
Table 2). Antwerp airport is located at the heart of a major trade centre and main
logistics hub, which involves the second-largest port in Europe, and it mostly
serves business passengers. Ostend airport is important for freight transport and
serves as a Union border inspection post for the transport of live animals, animal
products and perishable goods in a complementary relationship with the nearby
seaports of Ostend and Zeebrugge.
Table 2: Movements, passenger traffic, freight traffic, added value and
employment generated by the airports of Antwerp and Ostend14
Antwerp airport Ostend airport
Movements (2019) 36 372 25 461
Passenger (2019) 306 330 457 423
Freight (2019, in ton) 2 608 24 757
Added Value (EUR million) 85.2 37.1
Employment (FTE)15 1 090 633
(19) Therefore, the Measures based on the Temporary Framework aim at tackling the
difficulties currently faced by the Flemish airport operators and ensuring that
sufficient liquidity remains available to them, so that the disruptions caused by
the coronavirus outbreak do not undermine their viability.
13 The annual report of the LEM Antwerpen shows that “Current assets (29/58)” amount to EUR
3 842 248 and “Debts < 1 year (42/48)” amount to EUR 3 959 909, leading to a “Net working capital”
of EUR – 117 661. The annual report of the LEM Oostende-Brugge shows that “Current assets
(29/58)” amount to EUR 3 789 188 and “Debts < 1 year (42/48)” amount to EUR 5 099 307, leading
to a “Net working capital” of EUR – 1 310 119.
14 Source: NBB study, Economic Importance of Air Transport and Airport Activities in Belgium –
Report 2015, published in July 2017. An update of that study will be published in 2020, but is not yet
available.
15 Full-time equivalent (FTE) is a unit that indicates the workload of an employed person in a way that
makes workloads or class loads comparable across various contexts.
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2.4. Legal basis
(20) The legal basis for the aid scheme notified under section 3.1 of the Temporary
Framework is a decision that will be adopted by the Flemish government to offer
direct grants to the Flemish airport operators in the context of the COVID-19
crisis.16
(21) The two subsidised loans in favour of the LEMs notified under section 3.3 of the
Temporary Framework will be based on a future unilateral decision to be adopted
by the Flemish Region and the LOMs.
2.5. Administration of the Measures
(22) The Flemish Ministry of Mobility and Public Works will be responsible for
administering the direct grants.
(23) The Flemish Region and the LOMs will be responsible for administering the
deferrals of payment corresponding to subsidised loans.
2.6. The basic elements of the Measures
(24) Belgium notified two types of Measures:
i) an aid scheme providing direct grants to the Flemish airport operators
under section 3.1 of the Temporary Framework;
ii) two subsidised loans under section 3.3 of the Temporary Framework.
2.6.1. The aid scheme providing direct grants under section 3.1 of the
Temporary Framework
(25) The Belgian authorities indicated that the aid scheme has an estimated budget of
EUR 1 098 000.
(26) Under the scheme, each entity operating a Flemish regional airport will be
eligible for a direct grant of EUR 366 000. Belgium noted that the overall
maximum aid amount of EUR 800,000 per undertaking as set out in point 22(a) of
the Temporary Framework is respected, even taking into account that the LEM
Antwerpen and the LEM Oostende-Brugge are two subsidiaries of the same
parent company (see recital (11)).
(27) Aid may be granted under the scheme until 31 December 2020.
(28) The beneficiaries of the scheme providing direct grants under section 3.1 of the
Temporary Framework are the operators of the airports in the Flemish Region.
16 Order of the Flemish Government concerning the subsidy scheme aimed at limiting the impact of
COVID 19 on the liquidity position of the Flemish regional airports (Besluit van de Vlaamse Regering
betreffende de subsidieregeling die wordt toegepast teneinde de impact van COVID 19 op de
liquiditeitspositie van de Vlaamse regionale luchthavens te beperken).
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(29) Furthermore, the scheme provides that the direct grants may be granted only to
undertakings that were not already in difficulty within the meaning of the General
Block Exemption Regulation (the “GBER”)17 on 31 December 2019.18
2.6.2. The subsidised loans under section 3.3 of the Temporary Framework
(30) The two other aid measures notified by the Belgian authorities under section 3.3
of the Temporary Framework are in favour of the LEMs only. Those two aid
measures consist of:
i) a deferral of payment of the annual compensation due by the LEMs to the
Flemish Region for the use of the statutory staff made available by the
Belgian authorities under the LOM-LEM service agreement for the year
2020;
ii) a deferral of payment of the concession fee owed by the LEMs to the
LOMs under the concession agreements for the year 2020.
(31) These forms of aid are equivalent to a subsidised loan in favour of the LEMs
under section 3.3 of the Temporary Framework.19 The granting authorities will
apply an interest to the amounts for which invoicing is suspended.
(32) The Flemish Region will grant a deferral of payment of the compensation for the
use of the statutory staff due by the LEMs for 2020, whose net amount is equal to
EUR 285 532 for the LEM Antwerpen and EUR 275 844 for the LEM Oostende-
Brugge.20
(33) The LOMs will also grant a deferral of payment of the concession fee due by the
LEMs for 2020, which amounts to EUR 255 810 for the LEM Antwerpen and
EUR 262 265 for the LEM Oostende-Brugge.
(34) The Belgian authorities confirmed that the total amount of the subsidised loans
does not exceed 25% of the total turnover of the beneficiaries in 2019. The loans
amount to 13% and 8.6% of the total turnover of the LEM Antwerpen and of the
LEM Oostende-Brugge respectively.
17 Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid
compatible with the internal market in application of Articles 107 and 108 of the Treaty, OJ L 187,
26.6.2014, p. 1.
18 As defined in Article 2(18) of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring
certain categories of aid compatible with the internal market in application of Articles 107 and 108 of
the Treaty, OJ L 187, 26.6.2014, p. 1.
19 Commission decision of 11 April 2020, case SA.56807 – Covid-19: Mesures de soutien en faveur des
aéroports wallons – Moratoire sur les redevances de concession, Belgium, paragraph 53; Commission
decision of 14 August 2020, case SA.58095 – Covid-19: Concession fee deferral for Burgas and
Varna airports, Bulgaria, paragraph 58.
20 This refers to the cost of statutory staff members that do not carry out safety and security tasks, which
are subsidised tasks financed by the Flemish Region.
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Table 3: Total turnover of the LEMs in 2019
LEM Antwerpen LEM Oostende-Brugge
Total turnover 2019 EUR 4 203 079 EUR 6 244 050
(35) The Belgian authorities stated that normally the Flemish Region invoices the
compensation due for the use of the statutory staff on a quarterly basis, and the
LEMs have a 30-day delay for the payment. As to the concession fees for year
2020, they were due by the LEMs on 1 April 2020.21
(36) The deferrals of payment will be granted before 31 December 2020 by unilateral
decisions of the Flemish Region and of the LOMs so that the payments of the
compensation for the use of the statutory staff and of the concession fees will be
delayed until 31 December 2021.
(37) The interest rate for the subsidised loans has been fixed at 0.19% for the first year
and at 0.69% for the second year. It has been calculated in accordance with point
27(a) of the Temporary Framework.
Table 4: Calculation of the interest rate
Base rate22 Margin Combined
1 year -0.31% 0.5% 0.19%
2 year -0.31% 1% 0.69%
(38) The deferrals of payment will only benefit the LEM Antwerpen and the LEM
Oostende-Brugge.
(39) The Belgian authorities explained their approach on the basis that the LOM-LEM
structure has not yet been implemented at Kortrijk airport (see recital (12)).
Because Kortrijk airport is directly managed by the public company IKLW NV,
there is neither a concession agreement providing for the payment of a concession
fee nor a service agreement making statutory staff (civil servants) available to the
company running the airport.
(40) The Belgian authorities provided evidence that neither the LEMs nor their parent
company EGIS were undertakings in difficulty within the meaning of the GBER
on 31 December 2019.
21 See Clause 7.1 of the Concession Agreements of Antwerp and Ostend airports.
22 Commission Notice 2020/C 64/05 on current State aid recovery interest rates and reference/discount
rates applicable as from 1 March 2020 (published in accordance with Article 10 of the Commission
Regulation (EC) No 794/2004 of 21 April 2004 (OJ L 140, 30.04.2004, p. 1).
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2.7. Cumulation
(41) The Belgian authorities confirmed that the aid measures granted under section 3.1
of the Temporary Framework may be cumulated with de minimis aid and/or with
aid under the General Block Exemption Regulation. In such a case, the Belgian
authorities committed to respect the provisions of the relevant Regulations that
will apply.
(42) The Belgian authorities confirmed that the two aid measures granted under
section 3.3 of the Temporary Framework will not be cumulated with aid granted
for the same underlying loan principal under section 3.2 of the Temporary
Framework. They also confirmed that as for such measures, the maximum
threshold on loans as specified in points 27(d) of the Temporary Framework is
respected per beneficiary.
2.8. Monitoring and reporting
(43) The Belgian authorities confirmed that they will respect the monitoring and
reporting obligations laid down in section 4 of the Temporary Framework,
including the obligation to publish relevant information on each individual aid
above EUR 100 000 on the national State aid website or the Commission’s IT tool
within 12 months from the moment of granting.23
(44) The Belgian authorities also confirmed that they will keep detailed records of all
information relating to the aid measures to be granted and will provide it to the
Commission services upon request.
3. ASSESSMENT
3.1. Lawfulness of the Measures
(45) By notifying the scheme providing direct grants before putting it into effect, the
Belgian authorities have respected their obligations under Article 108(3) TFEU.
(46) However, as regards the subsidised loans under section 3.3 of the Temporary
Framework, the Commission notes that the deferral of some of the payments due
by the LEMs has already taken place without prior authorisation of the
Commission (see recital (35)). In particular, the LEMs have not paid the
compensation due for the use of the statutory staff for the first and second
quarters of 2020, nor the concession fees for year 2020, which were due on 1
April 2020.24
23 Referring to information required in Annex III to Commission Regulation (EU) No 651/2014, Annex
III to Commission Regulation (EU) No 702/2014 and Annex III to Commission Regulation (EU) No
1388/2014. For guarantees, loans and other forms of aid, the nominal value of the underlying
instrument will be inserted per beneficiary. For tax and payment advantages, the aid amount of the
individual aid may be indicated in ranges.
24 See Clause 7.1 of the Concession Agreements of Antwerp and Ostend airports.
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(47) Therefore, the Commission regrets that Belgium has unlawfully granted non-
notified aid to the LEMs by means of deferrals of payment, contrary to Article
108(3) TFEU.
3.2. Existence of State aid
(48) For a measure to be categorised as aid within the meaning of Article 107(1)
TFEU, all the conditions set out in that provision must be fulfilled. First, the
measure must be imputable to the State and financed through State resources.
Second, it must confer an advantage on its recipients. Third, that advantage must
be selective in nature. Fourth, the measure must distort or threaten to distort
competition and affect trade between Member States.
3.2.1. State resources
(49) The Measures are financed through State resources, as they are supported via
public funds.
(50) Firstly, the Flemish Region will propose direct grants to the Flemish airports
operators.
(51) Moreover, the Flemish Region provides the statutory staff to the LEMs and
collects from the latter a compensation for the costs of that staff payable by the
LEMs. By waiving its right to collect the compensation for the use of the
statutory staff at the time when it is due to be paid, the Flemish Region is
effectively foregoing State resources for the duration of the deferral of the
payment of such cost.
(52) Finally, the Flemish Region owns the infrastructure of the airports of Antwerp
and Ostend. It manages them via the LOMs, the lessees of the airports
infrastructure, which are public entities 100% held by the Flemish Region (see
recital (10)). The LOMs collect the concession fees payable by the LEMs for the
operation and management of the respective infrastructures. By waiving their
right to collect the concession fee at the time when it is due to be paid, the LOMs
in essence forego State resources for the duration of the deferral of the payment of
the concession fees.
(53) The Belgian authorities do not contest that the notified Measures are imputable to
the Belgian State.
(54) The Commission concludes from the above that the notified Measures are
imputable to the Belgian State.
3.2.2. Selective advantage
(55) The Measures confer an advantage on the beneficiaries in the form of (i) direct
grants to the Flemish airport operators in the case of the scheme; and (ii) the
suspension for the airport operators of Antwerp and Ostend of the invoicing of the
compensation due for the use of the statutory staff and of the concession fees
payable for the year 2020 in the case of the subsidised loans. They thus relieve the
beneficiaries of costs that they would have had to bear under normal market
conditions.
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(56) The advantage granted by the scheme providing direct grants is selective as it is
awarded only to the operators of Flemish regional airports, without there being
any element to indicate that they are in a distinct situation to that of other
undertakings.
(57) Likewise, the advantage granted by the subsidised loans in the form of the
suspension of the invoicing of the compensation due for the use of the statutory
staff and of the concession fees is selective as it is awarded only to the LEMs of
Antwerpen and Oostend-Brugge, without there being any element to indicate that
they are in a distinct situation to that of other undertakings.
3.2.3. Distortion of competition and effect on trade
(58) The Measures are liable to distort competition, since they strengthen the
competitive position of the beneficiaries. They also affect trade between Member
States, since the beneficiaries are active in the airport sector in which intra-Union
trade exists.
3.2.4. Conclusion on the existence of State aid
(59) In view of the above, the Commission concludes that the Measures constitute Sate
aid within the meaning of Article 107(1) TFEU.
3.3. Compatibility
(60) Since the Measures involve aid within the meaning of Article 107(1) TFEU, it is
necessary to consider whether the Measures are compatible with the internal
market and in particular with Article 107(3)(b) TFEU.
(61) Pursuant to Article 107(3)(b) TFEU, the Commission may declare compatible
with the internal market aid “to remedy a serious disturbance in the economy of a
Member State”.
(62) By adopting the Temporary Framework on 19 March 2020, the Commission
acknowledged in section 2 that “the COVID-19 outbreak affects all Member
States and that the containment measures taken by Member States impact
undertakings”. The Commission concluded that “State aid is justified and can be
declared compatible with the internal market on the basis of Article 107(3)(b)
TFEU, for a limited period, to remedy the liquidity shortage faced by
undertakings and ensure that the disruptions caused by the COVID-19 outbreak
do not undermine their viability, especially of SMEs”.
(63) Flemish airports, like all European airports, have been suffering from the collapse
of air traffic linked to the COVID-19 crisis and are particularly exposed to the
global economic slowdown caused by it. The decrease in traffic has led to a
proportional decrease in the airports revenues, while their costs vary little.
(64) According to the estimates provided by the Belgian authorities, as a result of the
COVID-19 crisis, this year the LEM Antwerpen expects a decrease in turnover of
EUR […]; the LEM Oostend-Brugge expects a decrease in turnover of EUR […]
(see recital (15)). Therefore, the operators of the airports of Antwerp and Ostend
face a particularly severe liquidity crisis that can jeopardise their viability in the
absence of support measures (see recital (16)).
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(65) In the light of the above, the Commission considers that the Measures put in place
to support the liquidity of the Flemish airport operators contribute to mitigating a
serious disturbance in the Belgian economy.
(66) The Measures aim at relieving the cash-flow needs of the Flemish airports at a
time when the surge of COVID-19 disrupts the normal functioning of the markets
and harms the real economy of the Member States.
(67) Furthermore, the Measures are designed to meet the conditions of two specific aid
categories (“limited amounts of aid” and “aid in the form of subsidised interest
rates for loans”) described in section 3.1 and section 3.3 of the Temporary
Framework.
(68) As regards the scheme providing direct grants and its compliance with section 3.1
of the Temporary Framework (see recitals (25)-(27)), the Commission considers
that the aid is necessary, appropriate and proportionate to remedy a serious
disturbance in the economy of a Member State and that all the conditions set out
in the Temporary Framework are met. In particular:
the overall direct grant aid does not exceed EUR 800 000 per undertaking
(considering all figures gross, before any deduction of tax or other
charges) (see recital (26));
the aid is granted on the basis of a scheme with an estimated budget (see
recital (25));
the aid will be granted no later than 31 December 2020 (see recital (27));
and
the aid may be cumulated with de minimis aid and/or with aid under the
GBER and, in that case, the provisions of the relevant Regulations will be
respected (see recital (41)).
(69) As for the deferrals of payment granted to the LEMs (see recital (30)), although
not an aid in the form of an interest rate loan, they can be equated with such aid
from an economic point of view. It is therefore appropriate to apply by analogy
the principles and conditions laid down in section 3.3 of the Temporary
Framework.25
(70) The Commission considers that those deferrals of payment are necessary,
appropriate and proportionate to remedy a serious disturbance in the economy of
a Member State and that all the conditions set out in the Temporary Framework
are met. In particular:
25 This is in line with the Commission’s decision practice, see e.g. State aid decision in case SA.56807
(2020/N) – BE - COVID-19: Mesures de soutien en faveur des aéroports wallons – Moratoire sur les
redevances de concession, see:
https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_56807.
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the applicable interest rate for the subsidised loans is equal to the base rate
(1 year IBOR or equivalent as published by the Commission)26 available
on 1 January 2020 plus a credit margin of 50 basis points for the first year
and 100 basis points for the second year. The subsidised loans therefore
comply with point 27(a) of the Temporary Framework (recital (37));
the moratoria, equivalent to loans, will be granted before 31 December
2020 and will have variable durations of up to a maximum of 21 months,
depending on the date at which the payments were initially due (recital
(35)). The subsidised loans are therefore in line with point 27(c) of the
Temporary Framework;
for loans maturing after 31 December 2020, the amount of fees that
benefits from the moratoria does not exceed 25% of the beneficiary’s total
turnover in 2019 in line with the limits set out in point 27(d) of the
Temporary Framework (recital (34));
the moratoria partially cover the working capital requirements of the
beneficiary (recital (32)). They are therefore in line with point 27(f) of the
Temporary Framework; and
the cumulation rules set out in point 26 bis of the Temporary Framework
will be respected (recital (42)).
(71) In addition, the Commission verified that the subsidised loans are granted to
undertakings that were not in difficulty within the meaning of the GBER on 31
December 2019 (recital (40)). The subsidised loans are therefore in line with
points 22(c) and 27(g) of the Temporary Framework.
(72) Finally, the Belgian authorities have undertaken to comply with the rules
contained in section 4 of the Temporary Framework, concerning the monitoring
of aid and the transmission of annual reports (recital (43)).
26 Base rates calculated in accordance with Communication from the Commission on the revision of the
method for setting the reference and discount rates (OJ C 14, 19.1.2008, p. 6).
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4. CONCLUSION
The Commission has accordingly decided not to raise objections to the aid Measures on
the grounds that they are compatible with the internal market pursuant to Article
107(3)(b) TFEU.
If this letter contains confidential information that should not be disclosed to third
parties, please inform the Commission within fifteen working days of the date of receipt.
If the Commission does not receive a reasoned request by that deadline, you will be
deemed to agree to the disclosure to third parties and to the publication of the full text of
the letter in the authentic language on the Internet site:
http://ec.europa.eu/competition/elojade/isef/index.cfm.
Your request should be sent electronically to the following address:
European Commission,
Directorate-General Competition
State Aid Greffe
B-1049 Brussels
[email protected]
Yours faithfully,
For the Commission
Margrethe VESTAGER
Executive Vice-President