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Ministry of Finance
of the Republic of Latvia
1 Smilsu st., Riga
LV-1919, Latvia

P.: +371-67095405
F.: +371-67095503
E-mail: pasts@fm.gov.lv
info@fm.gov.lv

Other compatible limited amounts of aid 23/04/2012

Taking into account the impact of the global financial crisis on the real economy, the European Commission on December 17, 2008 adopted a Communication “Temporary Community framework for state aid measures to support access to funding in the current financial and economic crisis” (hereinafter – the Commission Communication), which introduced a new aid measure  of limited amount, which is an aid in the meaning of Article 87, paragraph 1 of the Treaty, but which may be deemed compatible with the common market under Article 87, paragraph 3 (b) of the Treaty. The aid measure of limited amount provided that de minimis aid granted to one company in accordance with Commission Regulation No 1998/2006 and the other aid of limited amount under a special aid programme for the situation of economic crisis approved by the European Commission does not exceed 500 000 euros during the period from January 1, 2008 to December 31, 2011.

The Ministry of Economics introduced a guarantee support programme – “Guarantees to improve competitiveness of companies” (Case No 124/2009, the European Commission’s decision of March 19, 2009 No C (2009) 2121) as a limited aid support programme, therefore the aid accounting procedure had to be adjusted at the national level in cases where the company in addition to de minimis aid according to Commission Regulation (EC) No 1998/2006 of December 15, 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid received or wished to receive also other aid of limited amount according to the Commission Communication. Consequently, Cabinet Regulation No 851 “Regulation on sample forms for accounting of de minimis and other aid of limited amount and procedures for granting” (hereinafter – CoM Regulation No 851) was adopted on August 4, 2009.

On December 1, 2010 the European Commission adopted a new Communication – Temporary Community framework for state aid measures to support access to funding in the current financial and economic crisis. Paragraph 2.2 (h) of the Communication provides that de minimis aid and aid of limited amount up to 500 000 EUR should be accounted for by December 31, 2011. So the above mentioned Cabinet of Ministers Regulation is not up to date now and is recognized as null and void. However, the European Commission reserves the right to restore this temporary regulation for crisis period, if necessary.
 

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