Portugal

Since the beginning of the pandemic, the Commission has adopted support measures under the state aid Temporary Framework and EU state aid rules. These measures aim to help citizens and companies and mitigate the significant economic impact of the coronavirus pandemic:

• on 22 December 2021, the Commission approved  €2.55 billion of restructuring aid for Group Transportes Aéreos Portugueses SGPS S.A. and TAP Air Portugal airline, and €107.1 for TAP Air Portugal for damages suffered due to the coronavirus pandemic.  The assistance, in the form of equity or quasi equity measures, aims to compensate for loss incurred due to travel restrictions put in place to limit the spread of the coronavirus, and help support the beneficiaries’ long-term viability.

• on 14 September 2021, the Commission approved a €500,000 scheme to further support the passenger transport sector in the Region of the Azores in the context of the coronavirus outbreak, following the previous measure from 4 June 2021. Under the scheme, the support, in the form of direct grants, aims to mitigate the sudden liquidity shortages faced by the beneficiaries and address the losses incurred due to the coronavirus outbreak and the restrictive measures implemented to limit the spread of the virus.

• on 1 September 2021, the Commission approved a €10 million scheme to support farmers active in the outermost region of the Azores in the context of the coronavirus outbreak. Under the scheme, the public support, in the form of direct grants, aims to mitigate the liquidity shortages and part of the losses the beneficiaries incurred due to the coronavirus outbreak and the restrictive measures put in place to limit the spread of the virus.

• on 29 July 2021, the European Commission has approved a €275,000 Portuguese scheme to support companies active in the sugarcane-processing sector in Madeira. The measure aims at mitigating the liquidity shortages that the beneficiaries are facing and at addressing part of the losses that they incurred due to the coronavirus outbreak and the restrictive measures in place to limit the spread of virus. Under the scheme, the public support will take the form of direct grants.

• on 19 July 2021, the Commission approved, under EU state aid rules, a calculation methodology for premiums on guaranteed loans for micro, small- and medium-sized enterprises. The methodology aims to serve the granting authorities in calculating price guarantees at market-rate, or the aid element in guarantees for the purpose of the application of the De Minimis Regulation or of the General Block Exemption Regulation.

• on 29 June 2021, the Commission approved a €8 million scheme to support micro, small and medium-sized enterprises affected by the coronavirus outbreak in the outermost region of the Azores. Under the state aid Temporary Framework, the public support, in the form of direct grants, was earmarked for beneficiaries active in the most severely impacted sectors (tourism, hospitality, etc.).

• on 4 June 2021, the Commission approved a €500,000 scheme to support the passenger transport sector in the Region of the Azores in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the aid, in the form of direct grants, aims to mitigate the liquidity shortages faced by the beneficiaries due to the coronavirus outbreak, and the restrictive measures that the government had to implement to limit the spread of the virus.

• on 10 May 2021, the Commission approved a €22 million scheme to support micro, small and medium-sized enterprises in the region of Madeira, in the context of the coronavirus outbreak. The scheme, “APOIAR.PT.Madeira”, is open to companies operating in the sectors most affected by the economic impact of the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, aims to help companies that have experienced a fall in turnover of at least 25% in 2020 compared to the same period in 2019.

• on 3 May 2021, the Commission approved €12 million in support in favour of the Portuguese SATA Air Açores company - Sociedade Açoriana de Transportes Aéreos S.A. (‘SATA Air Açores') - as compensation for the damages suffered due to the travel restrictions imposed in the context of the coronavirus outbreak. The support will take the form of a €12 million direct grant. The Commission also approved up to €255.5 million additional support to SATA Air Açores, to alleviate the company’s immediate liquidity needs.

• on 27 April, the Commission approved a €8 million scheme to support companies in the Azores region in the context of the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of direct grants, aims to mitigate the impact of the restrictive measures imposed by the authorities to limit the spread of the coronavirus. 

• on 26 April, the Commission confirmed that a €462 million support measure in favour of Transportes Aéreos Portugueses, S.A., the largest airline based in Portugal, was in line with EU state aid rules. The measure aims to compensate the company for damages incurred between March and June 2020, as a direct result of the containment measures and travel restrictions introduced to limit the spread of the coronavirus.

• on 16 April 2021, the Commission approved a €150 million scheme to support Portuguese companies in the region of the Azores affected by the coronavirus outbreak. Under the state aid Temporary Framework, the support, in the form of a direct grant, aims to mitigate the negative impact of the government-imposed restrictive measures to limit the spread of the coronavirus on companies active in the region of the Azores.

• on 6 April 2021, the Commission approved a €35 million scheme to support companies in the Azores region affected by the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, is open to companies of all sizes active in the Azores, conditioned on the level of employment maintained until June 2021.

• on 31 March 2021, the Commission approved, under EU state aid rules, a €500 million Portuguese top-up insurance scheme to support domestic trade credit in the context of the coronavirus outbreak. The scheme aims to support the availability of trade credit insurance to all companies, therefore reducing their immediate liquidity needs.

• on 2 March 2021, the Commission approved a €15 million Portuguese scheme to support micro, small and medium-sized enterprises with head offices or permanent establishments in the region of the Azores in the context of the coronavirus outbreak. The ‘Apoiar.PT Açores –4ºT 2020' scheme is open to companies from sectors most severely affected by the economic impact of the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, complements the measure approved on 11 February 2021. 

• on 11 February 2021, the Commission approved a €35 million Portuguese scheme to support micro, small and medium-sized enterprises with head offices or permanent establishments in the region of the Azores in the context of the coronavirus outbreak. The scheme is open to companies from sectors most severely affected by the economic impact of the coronavirus outbreak. Under the state aid Temporary Framework, the public support, in the form of direct grants, is open to companies that have experienced a 25% fall in turnover in the first three quarters of 2020 compared to the same period in 2019. The scheme was complemented by a €15 million measure approved on 2 March 2021, aimed at supporting companies with 25% falls in turnover in the last quarter of 2020 compared to the same period in 2019.

• on 21 January 2021, the Commission found the modification of an existing Portuguese scheme to support the economy in the context of the coronavirus outbreak, as well as a new measure, to be in line with the State aid Temporary Framework. The existing scheme, approved in November 2020, was modified at the request of Portugal, to increase the total budget from €750 million to €1.2 billion, increase the maximum amount available per beneficiary and modify eligibility conditions. The new measure, “Apoiar Rendas”, is funded from the budget of the amended scheme and is intended to compensate companies for a certain percentage of their rental payments and provide financial support, to help businesses preserve jobs and avoid lay-offs.

• on 30 November, a €750 million Portuguese scheme to support micro, small and medium companies active in sectors particularly affected by the coronavirus outbreak. Under the state aid Temporary Framework, the public support will take the form of direct grants available under two different measures:  ‘Apoiar.PT', open to micro and small companies exclusively active in commerce and services open to consumers, cultural activities, touristic activities, the hospitality sector, and food and beverage service activities, and ‘Apoiar Restauração', open to micro, small and medium  companies in the food and beverage sector. The aim of the measures is to address the liquidity needs of the beneficiaries, and help them continue their activities during and after the outbreak.

• on 20 October, a €9.35 million Portuguese aid scheme for preserving employment on the Azores Islands during the coronavirus outbreak. Under the State aid Temporary Framework, the scheme follows two measures approved by the Commission in May 2020, which have expired. It aims at compensating the wage costs of companies in the Region of the Azores, which would otherwise have laid off personnel due to the coronavirus outbreak and the emergency measures taken by the State to limit its spread.

• on 31 August 2020,  a €5 million Portuguese credit line scheme to support SMEs active in Madeira in the agricultural and agri-food sectors, which have been affected by the coronavirus outbreak. The public support, which will take the form of subsided interest rates, will be open to small and medium-sized enterprises (SMEs) active in the agricultural and agri-food sectors in the autonomous region of Madeira. The scheme aims at helping the beneficiaries address the liquidity shortages they have suffered due to the coronavirus outbreak.

• on 22 June 2020, a €40 million Portuguese scheme to support companies affected by the coronavirus outbreak in the autonomous region of Madeira. The support will take the form of direct grants and State guarantees on loans and will be open to all companies that are active in the autonomous region of Madeira. The measure will be implemented by the Sociedade Portuguesa de Garantia Mútua and the public Instituto de Desenvolvimento Empresarial, acting on behalf of the State. The scheme aims at providing liquidity to companies affected by the coronavirus outbreak, thus enabling them to continue their activities, start investments and maintain employment.

• on 10 June 2020, under EU State aid rules, Portugal's plans to grant a €1.2 billion rescue loan in favour of Transportes Aéreos Portugueses SGPS S.A. (“TAP”). The measure will provide TAP with the necessary resources to address its immediate liquidity needs, without unduly distorting competition in the Single Market.  TAP is not eligible to receive support under the Commission's State aid Temporary Framework, aimed at supporting otherwise viable companies. The Commission therefore assessed the measure under its Guidelines on rescue and restructuring, which enable Member States to support companies in difficulty, provided, in particular, that the public support measures are limited in time and scope and contribute to an objective of common interest.  The Commission found that the measure will help avoid disruptions for passengers in particular in view of the easing of travel restrictions and the upcoming touristic season. It will therefore indirectly support the Portuguese tourism sector, which has been hit hard by the coronavirus outbreak. At the same time, the strict conditions attached to the loan in terms of remuneration and use of the funds and its duration limited to six months will reduce the distortion of competition potentially triggered by the State support to a minimum.

• on 25 May 2020, two Portuguese aid schemes intended to preserve employment in the Azores during the coronavirus pandemic, with a total budget accumulated by 43 million euros. With regard to the first aid scheme, aid may be granted to companies of all sizes operating in sectors particularly affected by the coronavirus pandemic, as defined by the regional government. With regard to the second aid scheme, companies considered to be "in a crisis situation", as defined in the national legislative decree of 26 March 2020, are eligible for the aid. For the two aid schemes, the employers undertake to maintain the employment of the members of the staff for whom they benefit from the aid until the end of December 2020.

• a €140 million Portuguese aid scheme to support investment in research and development (R&D), testing and production of products that are relevant to the coronavirus outbreak, including vaccines, ventilators and personal protective equipment. Of the scheme’s total budget of €140 million, €50 million will be devoted to coronavirus related R&D projects and testing facilities and €90 million will finance the production of coronavirus relevant products. The public support will take the form of direct grants. The scheme is open to all enterprises capable of carrying out such activities in all sectors. The aim of the scheme is to enhance and accelerate both the development and the production of products directly relevant to the coronavirus outbreak. These include medicinal products such as vaccines, hospital and medical equipment including ventilators, and protective clothing and equipment. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

• on 8 April 2020, a Portuguese scheme to support the Portuguese fishery and aquaculture sector in the context of the coronavirus outbreak. It takes the form of a credit line to support companies in the fishery and aquaculture sector affected by the coronavirus outbreak. The scheme will consist of the provision of loans worth up to €20 million with subsidised interest rates, to help companies active in this sector (such as fishing companies, producers' organisations and companies active in the processing of fishery and aquaculture products), overcome cash difficulties arising from the current crisis. The scheme, which will be accessible to small and medium-sized enterprises (SMEs) active in the fishery and aquaculture sector, aims at enabling those companies that are most affected by the current crisis, to have access, at reduced costs, to the financial means they need to maintain their activities.

• on 4 April 2020, two Portuguese State aid schemes to support the Portuguese economy in the context of the coronavirus outbreak. The schemes are to support companies affected by the coronavirus outbreak: a direct grant scheme, and a State guarantee scheme for investment and working capital loans granted by commercial banks. The support under both schemes will be accessible to small and medium-sized enterprises (SMEs) and large companies facing difficulties due to the economic impact of the coronavirus outbreak. The aim of the schemes is to help businesses to cover their immediate working capital or investment needs, thus ensuring the continuation of their activities.

• on 22 March 2020, four Portuguese guarantee schemes for small and medium-sized enterprises (SMEs) and midcaps affected by the Coronavirus outbreak. The schemes were approved under the State aid Temporary Framework, and apply in four different sectors: (i) tourism; (ii) restaurants; (iii) extractive and manufacturing industry; and (iv) travel agency activities, tourism, event organisation.