The tug of war with the EU Commission is over. The EU authority announced the decision in the afternoon.
The fixed cost subsidy 2 can amount to up to 3 million euros per company. The EU Commission announced on Friday afternoon. Finance Minister Gernot Blümel (ÖVP) had originally wanted 5 million euros, and there was a violent tug of war with the EU authorities. Finally, the fixed cost subsidy 2 should be capped at 800,000 euros until an agreement is reached, which has now been reached.
From Monday, however, the version with 800,000 euros will still be available for the time being, according to the Ministry of Finance. There, the details of the 3 million fixed cost grant are being worked on.
“The 'Fixed Cost Grant Phase 2' program enables Austria to support companies in coping with their problems,” said EU Competition Commissioner Margarete Vestager in the EU Commission's communication. “We continue to work closely with Member States to find workable solutions to mitigate the economic impact of the coronavirus in accordance with EU regulations.”
From Monday, the lockdown revenue replacement for retail and other industries can also be requested in Austria.
Fixed cost subsidy 2 in detail
In order for companies to be able to access fixed cost subsidy 2 with 3 million euros, they have to record a drop in sales of at least 30 percent compared to the same period in the previous year. A maximum of 70 percent of the uncovered fixed costs may be covered; for micro and small businesses up to 90 percent. The companies must “not be in trouble”, according to the communication from the EU Commission on Friday.
Uncovered fixed costs are fixed costs that a company has or will incur during the eligible period – September 16, 2020 to June 30, 2021. During the same period, they must not be covered by the contribution margin, i.e. the difference between revenues and variable costs, or from other sources such as insurance, temporary aid measures or support from other sources.
