(Reuters) – The European Commission on Thursday approved a French scheme to provide up to 155 billion euros ($169 billion) in liquidity support to companies hit by the economic impact of the war in Ukraine.
The scheme is the first one approved under the EU crisis framework adopted last month, which temporarily eased the EU’s state aid rules following Russia’s invasion of Ukraine.
“This scheme will enable France to mitigate the economic impact of Putin’s war in Ukraine and to support companies affected by the current crisis, as well as by the related sanctions”, European Commission Vice President Margrethe Vestager said in a statement.
The measure will be financed using part of the 300 billion euro budget France had initially allocated under three French schemes to support the economy in light of the COVID-19 pandemic. They were initially approved in March 2021.
Under the new scheme, beneficiaries will be entitled to receive new loans that will be partly covered by a state guarantee.
($1 = 0.9163 euros)
(Reporting by Bart Meijer; editing by Philip Blenkinsop)
