Tánaiste meets Commissioner Kroes to discuss state aid issues
Tánaiste expresses appreciation for the early approval by EU Commission of Ireland’s ¤100 million Enterprise Stabilisation Fund
Following her meeting in Brussels this week with the EU Commissioner for Competition, Ms Neelie Kroes, the Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan T.D., said a very useful exchange had taken place on the community state aid rules system. Changes to the rules adapted by the EU before Christmas in its new framework in respect of state aid rules had paved the way for the submission by Ireland of its ¤100 million Enterprise Stabilisation Fund.
The Tánaiste thanked Commissioner Kroes for the early approval granted by the Commission which will allow Enterprise Ireland to proceed and allocate the funds to the enterprise sector in the coming months.
The purpose of the Fund is to provide additional funding for enterprise support to allow for meaningful assistance to be provided to basically sound internationally traded companies that would otherwise struggle to survive the global downturn. The fund will operate and will supply direct financial support, in conjunction with the banks, to eligible, internationally trading enterprises, which are undertaking development expenditures to reduce costs and gain sales in recession-hit overseas markets. The fund will complement the banks’ commitments to SMEs under the recapitalisation scheme.
The Tánaiste said, “Small and medium enterprises are extremely important to the Irish economy. The supports provided by this fund together with the assistance of our banks will help sustain these companies through our current economic difficulties.
The Tánaiste said she would continue her engagement with the Commissioner on state aid rules and in particular, their adaptation to Irish circumstances.
Commissioner Kroes confirmed to the Tánaiste that she plans to visit Ireland next month.
ENDS/ETE2036
7 May 2009
Notes for Editors
Some points of detail on Stabilisation Fund:
• While large companies may be assisted, Small and Medium Enterprises (SMEs), where the greatest impact would be achieved, will be targeted;
• All SMEs engaged in the internationally traded sectors (manufacturing and internationally traded services) are eligible to be considered for support;
• The fund is administered by Enterprise Ireland;
• Approvals are based on business plans submitted by applicant companies;
• Assistance is provided only to companies which
o are struggling to cope with the effects of the credit crunch and the collapse of international markets (under EU rules only companies which were not in difficulty on 1st July 2008 can be aided under the scheme);
o are judged to have sound, robust and sustainable business models and business plans that are financially viable in the medium term, and
o are capable of significant export growth in a global upturn;
• The projects to be supported are those that help the company position for future growth such as market development, product development and productivity;
• In any particular case the form of aid provided would reflect the business plan being supported but it is envisaged that aid would primarily be in repayable form (e.g., repayable grants, equity injections).
• The Fund will operate within the terms of the temporary relaxation in EU State aid rules which permits aid of up to ¤500,000 to be given to any company over the two year period 2009-10. The Commission has approved an aid scheme for this purpose.
ENDS//
Last modified: 07/05/2009
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