EUROPEAN COMMISSION

Brussels, 18.12.2020 C (2020) 9475 final

In the published version of this decision, PUBLIC VERSION some information has been omitted, pursuant to articles 30 and 31 of Council This document is made available for Regulation (EU) 2015/1589 of 13 July 2015 information purposes only. laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the , concerning non-disclosure of information covered by professional secrecy. The omissions are shown thus […]

Subject: State aid SA.59731 (2020/N) — Prolongation of the SME Rescue and Restructuring aid scheme of Finnvera plc

Excellency,

1. PROCEDURE

(1) On 23 November 2020, Finland notified to the Commission, pursuant to Article 108 (3) of the Treaty on the Functioning of the European Union (TFEU), the prolongation until 31 December 2023 of the aid scheme “SME Rescue and Restructuring Aid Scheme of Finnvera plc” for rescue and restructuring of SMEs and smaller State-owned enterprises in difficulties or facing acute liquidity needs due to exceptional and unforeseen circumstances (“the original scheme”). By letter of 27 July 2015, under case number SA.40093 (2015/N), the Commission decided not to raise objections to the aid scheme (“the original decision”)1 for a period from 1 August 2015 until 31 December 2020.

1 Commission Decision of 27 July 2015, JOCE C/309/2015

His Excellency Ulkoministeri Pekka HAAVISTO Merikasarmi PL 176 FIN – 00161

Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIUM — Tel. + 32 22991111 2. DESCRIPTION

(2) The sole purpose of this notification is to prolong the scheme approved in the original decision until 31 December 2023. All other criteria of the precedent scheme remain unchanged, in particular with regard to the beneficiaries and the conditions for granting the aid.

2.1. Objective

(3) The objective of the scheme remains, as described in recital (3) of the original decision, the rescue and restructuring of non-financial undertakings in difficulty in Finland. To this end three types of aid can be granted, namely rescue aid, restructuring aid and temporary restructuring support. The scheme will be operated by a State-owned financing company, Finnvera plc.

2.2. Beneficiary

(4) As further described in recitals (6) to (11) of the original decision, SMEs and smaller State-owned enterprises in difficulty within the meaning of points 20 (a), (b) and (c) of the Rescue and Restructuring Guidelines2 (hereinafter ‘the Guidelines’) are eligible for aid.

(5) Rescue aid and temporary restructuring support may also be granted to undertakings that are not in difficulty but that are facing acute liquidity needs due to exceptional and unforeseen circumstances as is described in recital (11) of the original decision.

2.3. Conditions for granting the aid

(6) As stated in recital (12) of the original decision, aid may only be granted if it contributes to a well-defined objective of common interest (recitals (14) to (18) of the original decision), if the need for State intervention is demonstrated (recital (19) of the original decision), if the aid measure is appropriate (points (20) to (24) of the original decision), if it has an incentive effect (recital (19) of the original decision) and is proportionate (recitals (25) to (31) of the original decision), and if excessive negative effects on competition and trade between Member States are avoided (recitals (32) to (36) of the original decision). Finally, the maximum total amount of aid that can be granted to the same undertaking is limited to EUR 10 million (recital 12 of the original decision).

(7) As described in recitals (38) of the original decision, temporary support must fulfil all the conditions for granting aid foreseen for rescue or restructuring aid, unless the scheme provides for specific rules. Special requirements are settled in recitals (39) and (42) of the original decision.

(8) In addition, Finland committed to comply with all the provisions on transparency of aid (point (43) and (44) of the original decision).

2 Communication from the Commission - Guidelines on State aid for rescuing and restructuring non- financial undertakings in difficulty, OJ C 249, 31.7.2014

2 2.4. Budget

(9) The budget remains the same as in the original decision, fixed at EUR 30 million per year, or EUR 90 million for the total duration of the extension.

3. ASSESSMENT

3.1. Existence of aid - Application of Article 107(1) TFEU

(10) According to Article 107(1) TFEU, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the internal market.

(11) In the original decision, the Commission found in recitals (47) to (51) that the notified scheme constituted State aid. The notified prolongation does not affect that qualification and the notified scheme entails State aid. The Commission, therefore, refers to that assessment.

3.2. Lawfulness of the aid – Application of Article 108(3) TFEU

(12) The Finnish authorities notified the aid before it was implemented, thus fulfilling their obligations under Article 108 (3) TFEU.

3.3. Compatibility of the aid

(13) According to Article 107(3)(c) TFEU, aid which facilitates the development of certain economic activities or of certain areas may be declared compatible with the internal market, provided that it does not affect trading conditions to an extent contrary to the common interest.

(14) In recitals (52) to (68) of the original decision, the Commission assessed the compatibility of the notified measure with the internal market in light of the Guidelines and concluded in recitals (69) and (70) that the scheme meets all the compatibility criteria laid down therein and is therefore compatible with the internal market.

(15) The Commission prolonged the validity of the Guidelines until 31 December 2023 without any modification of their rules and content3. The extension of the scheme until 31 December 2023, with a constant budget, does not modify the substantive assessment of its compatibility.

(16) Based on the above considerations, the Commission concludes that the proposed extension does not affect the assessment of the compatibility of the existing aid scheme with the internal market, as carried out in the original decision.

3 OJ C 224, 8.7.2020, p. 2

3 4. CONCLUSION

On the basis of the above assessment, the Commission has decided not to raise objections to the notified prolongation of the scheme, as it is compatible with the internal market pursuant to Article 107(3)(c) TFEU.

The decision is based on non-confidential information and is therefore published in full on the Internet site: http://ec.europa.eu/competition/elojade/isef/index.cfm.

For the Commission

Margrethe Vestager Executive Vice President

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