Zijne Excellentie de Heer Philippe Goffin

Minister van Buitenlandse Zaken en Europese Zaken

Karmelietenstraat 15

B - 1000 Brussel

Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel. +32 22991111

EUROPEAN COMMISSION

Brussels, 29.9.2020 C(2020) 6791 final

In the published version of this decision,

some information has been omitted,

pursuant to articles 30 and 31 of Council

Regulation (EU) 2015/1589 of 13 July 2015

laying down detailed rules for the

application of Article 108 of the Treaty on

the Functioning of the European Union,

concerning non-disclosure of information

covered by professional secrecy. The

omissions are shown thus […]

PUBLIC VERSION

This document is made available for information purposes only.

Subject: State Aid SA.58299 (2020/N) – Belgium - Covid-19: Aid to the

Flemish airports

Excellency,

1. PROCEDURE

(1) By electronic notification of 6 August 2020, Belgium notified to the Commission

(i) an aid scheme consisting in direct grants (the “scheme” or the “direct grants”)

in favour of the airport operators of the Flemish regional airports1 (the “Flemish

airports” or “the Flemish airport operators”) and (ii) two subsidised loans in

favour of the airport operators of Antwerpen airport (“Antwerp airport”) and

Oostende-Brugge airport (“Ostend airport”) (together the “Measures”), under the

Temporary Framework for State aid measures to support the economy in the

current COVID-19 outbreak, as amended (“the Temporary Framework”).2

1 The Flemish airports are: the airport of Antwerpen; the airport of Oostende-Brugge; and the airport of

Kortrijk-Wevelgem.

2 Communication from the Commission - Temporary framework for State aid measures to support the

economy in the current COVID-19 outbreak, OJ C 91I, 20.3.2020, p. 1, as amended by

Communication from the Commission C(2020) 2215 final of 3 April 2020 on the Amendment of the

2

(2) Following requests for information sent by the Commission on 25 August and on

15, 16 and 24 September 2020, Belgium supplemented and amended its

notification on 8, 9, 16, 23 and 25 September 2020.

(3) Belgium exceptionally agrees to waive its rights deriving from Article 342 of the

Treaty on the Functioning of the European Union (hereinafter “TFEU”), in

conjunction with Article 3 of Regulation 1/19583 and accepts to have this

Decision adopted and notified in English.

2. DESCRIPTION OF THE MEASURES

2.1. The COVID-19 outbreak in Belgium and its negative impact on the

Flemish airports

(4) On 4 February 2020, the first case of the infectious disease SARS-CoV-2

(COVID-19) was reported in Belgium.4

(5) As other countries did, in response to the COVID-19 outbreak, Belgium took

sequential mitigation measures (“containment measures”) to prevent the spread of

the COVID-19 virus in the country.

(6) On 13 March 2020, the Member State declared the federal phase of the national

emergency plan,5 by prohibiting all private and public activities of social,

recreational and sporting nature.

(7) On 18 March 2020, the Federal Government tightened the measures it had already

imposed6 and introduced nationwide contact and movement limitations. The

Temporary Framework for State aid measures to support the economy in the current COVID-19

outbreak, OJ C 112I , 4.4.2020, p. 1; by Communication from the Commission C(2020) 3156 final of 8

May 2020 on the Amendment of the Temporary Framework for State aid measures to support the

economy in the current COVID-19 outbreak, OJ C 164, 13.5.2020, p. 3; and by Communication from

the Commission C(2020) 4509 final of 29 June 2020 on the Third Amendment of the Temporary

Framework for State aid measures to support the economy in the current COVID-19 outbreak, OJ C

218, 2.7.2020, p. 3.

3 Regulation No 1 determining the languages to be used by the European Economic Community, OJ 17,

6.10.1958, p. 385.

4 Source: the website of the Belgian government relating to COVID-19 (https://www.info-

coronavirus.be/en/).

5 Ministerial Decree of 13 March 2020 proclaiming the federal phase for the coordination and

management of the coronavirus COVID-19 crisis,

http://www.ejustice.just.fgov.be/eli/besluit/2020/03/13/2020030302/staatsblad.

6 Ministerial Decree of 18 March 2020 on urgent measures to contain the spread of the coronavirus

COVID-19, http://www.ejustice.just.fgov.be/eli/besluit/2020/03/18/2020030331/staatsblad (link to the

Dutch text; clicking on ‘Beeld van de publicatie’ provides a PDF version of the official Dutch and

French text). That Ministerial Decree was later repealed by the Ministerial Decree of 23 March 2020

on urgent measures to contain the spread of the coronavirus COVID-19, which, however, contains the

same measures, http://www.ejustice.just.fgov.be/eli/besluit/2020/03/23/2020030347/staatsblad (link to

the Dutch text; clicking on ‘Beeld van de publicatie’ provides a PDF version of the official Dutch and

French text).

3

Federal Government issued a worldwide travel warning requiring citizens to

refrain from unnecessary journeys.

(8) Due to the various restrictive measures taken at national level in relation to the

free movement of people domestically and internationally, the airlines operating

at the Flemish airports gradually reduced their scheduled flights as of March 2020

and finally suspended all scheduled flights. As a result of the containment

measures, passenger traffic at Antwerp airport decreased by approximately 99.6%

in April 2020, 95.6% in May 2020 and 90.8% in June 2020 as compared to the

same months in 2019. Ostend airport recorded a fall in passenger traffic of 99.3%

in April 2020, 98.5% in May 2020 and 96.1% in June 2020 as compared to the

same months in 2019.7

(9) On 15 June 2020, Belgium withdrew its travel warning requiring citizens to

refrain from unnecessary journeys outside Belgium (see recital (7)) for travels

within Europe. However, Belgium maintained a travel ban for the rest of the

world until at least 31 August 2020 in an effort to contain the coronavirus

pandemic. Moreover, on 4 September 2020, the Federal Public Service Foreign

Affairs again prohibited non-essential travel from Belgium to Spain, which had a

significant impact on Antwerp and Ostend airports.8

2.2. The structure of the Flemish airports

(10) Since 1988, the Flemish Region has been the owner of the airports situated on its

territory and responsible for their management. The Flemish Decree of 10 June

2008 introduced a new airport management structure for the Flemish airports,

known as the “LOM-LEM” structure. In particular:

– the “LOM” (Luchthavenontwikkelingsmaatschappij, i.e. the airport

development company) is a public entity, which is 100% held by the Flemish

Region and is the lessee of the airport infrastructure. The LOM is responsible

for the availability and extraordinary maintenance of the airport infrastructure

according to the requirements imposed by ICAO, EASA and environmental

authorities. There is one LOM per airport;

– the “LEM” (Luchthavenexploitatiemaatschappij, i.e. the airport operating

company) is the private airport operator responsible for the commercial

operation of the airport. The LEM provides the ordinary maintenance and all

investments necessary for the economic and commercial development of the

airport.

(11) Since 2014 the airports of Antwerp and Ostend have been managed by the two

independent public entities, the “LOM Antwerpen” and the “LOM Oostende-

Brugge” (together the “LOMs”), while the “LEM Antwerpen” and the “LEM

Oostende-Brugge” (together the “LEMs”) have been operating the two airports

from a commercial point of view. The Belgian authorities stated that the LEMs

are two subsidiaries of a French private company, EGIS Projects S.A. (“EGIS”),

7 Source: Belgian authorities, submission of 6 August 2020.

8 See information available at https://diplomatie.belgium.be/en (last access on 11 September 2020).

4

which received a 25-year concession following a public tender procedure carried

out between December 2009 and July 2013.

(12) The Belgian authorities specified that the LOM-LEM management structure has

not yet been implemented for the airport of Kortrijk-Wevelgem (“Kortrijk”),

which is managed by the public limited company Internationale Luchtaven

Kortrijk-Wevelgem (“NV ILKW”).9

2.3. Objective of the Measures

(13) The containment measures set out in section 2.1 have severely jeopardized the

economic and financial situation of the Flemish airports, which have suffered

from a drastic reduction of their revenues. As those airports mostly base their

business on professional and leisure travel, the ban on non-essential air travel in

force as of 18 March 2020 has affected them severely. In addition, as travel

throughout Europe is still impeded by local travel restrictions in place in

destination countries, passenger traffic is expected not to return in the coming

months to the levels seen prior to the outbreak of COVID-19.

(14) Based on the forecasts of passenger traffic in Europe developed by Airport

Council International (ACI),10 the LEMs have estimated the financial impact of

the pandemic crisis for financial year 2020. Considering the average value

between the optimistic scenario and the pessimistic scenario as described in the

ACI report, the forecast assumes that passenger traffic will evolve as set out in

Table 1:

Table 1 Average estimate for the evolution of passenger traffic for Antwerp

and Ostend airports based on ACI’s forecasts

04/20 05/20 06/20 07/20 08/20 09/20 10/20 11/20 12/20

0% 0% 0% 28% 43% 59% 63% 85% 80%

(15) Based on the forecasts set out in Table 1, compared to 2019, this year the LEM

Antwerpen expects a turnover decrease of EUR […]11 and the LEM Oostende-

Brugge expects a turnover decrease of EUR […].12 This means, considering both

LEMs together, a turnover decrease of […] % compared to the turnover of 2019.

(16) According to the Belgian authorities, the LEMs are not able to absorb the

financial impacts of the COVID-19 crisis in terms of liquidity. In particular, the

9 The Flemish Region holds 33% of the shares, while other shareholders are local public authorities,

notably an intermunicipal cooperation agency called Leiedal and the provincial development company

of the Province of West-Flanders.

10 Airports Council International – Europe, COVID-19 & AIRPORTS – Passenger traffic and revenue

impacts, Updated Forecast (27 April 2020).

11 The LEM Antwerpen expects an EBT of EUR – […] in 2020.

12 The LEM Oostende-Brugge expects an EBT of EUR – […] in 2020.

5

annual reports of the LEMs on 31 December 2019 show that they have a negative

working capital,13 thus they do not have reserves to withstand the expected losses.

(17) The objective of the Measures is to partially mitigate the negative economic

consequences of the COVID-19 crisis on the Flemish airports, which represent

essential gateways to the territory of the Flemish Region and fulfil a strategic

function for the whole Flemish economy.

(18) More particularly, the airports of Antwerp and Ostend contribute largely to the

regional economy and generate economic added value and employment (see

Table 2). Antwerp airport is located at the heart of a major trade centre and main

logistics hub, which involves the second-largest port in Europe, and it mostly

serves business passengers. Ostend airport is important for freight transport and

serves as a Union border inspection post for the transport of live animals, animal

products and perishable goods in a complementary relationship with the nearby

seaports of Ostend and Zeebrugge.

Table 2: Movements, passenger traffic, freight traffic, added value and

employment generated by the airports of Antwerp and Ostend14

Antwerp airport Ostend airport

Movements (2019) 36 372 25 461

Passenger (2019) 306 330 457 423

Freight (2019, in ton) 2 608 24 757

Added Value (EUR million) 85.2 37.1

Employment (FTE)15 1 090 633

(19) Therefore, the Measures based on the Temporary Framework aim at tackling the

difficulties currently faced by the Flemish airport operators and ensuring that

sufficient liquidity remains available to them, so that the disruptions caused by

the coronavirus outbreak do not undermine their viability.

13 The annual report of the LEM Antwerpen shows that “Current assets (29/58)” amount to EUR

3 842 248 and “Debts < 1 year (42/48)” amount to EUR 3 959 909, leading to a “Net working capital”

of EUR – 117 661. The annual report of the LEM Oostende-Brugge shows that “Current assets

(29/58)” amount to EUR 3 789 188 and “Debts < 1 year (42/48)” amount to EUR 5 099 307, leading

to a “Net working capital” of EUR – 1 310 119.

14 Source: NBB study, Economic Importance of Air Transport and Airport Activities in Belgium –

Report 2015, published in July 2017. An update of that study will be published in 2020, but is not yet

available.

15 Full-time equivalent (FTE) is a unit that indicates the workload of an employed person in a way that

makes workloads or class loads comparable across various contexts.

6

2.4. Legal basis

(20) The legal basis for the aid scheme notified under section 3.1 of the Temporary

Framework is a decision that will be adopted by the Flemish government to offer

direct grants to the Flemish airport operators in the context of the COVID-19

crisis.16

(21) The two subsidised loans in favour of the LEMs notified under section 3.3 of the

Temporary Framework will be based on a future unilateral decision to be adopted

by the Flemish Region and the LOMs.

2.5. Administration of the Measures

(22) The Flemish Ministry of Mobility and Public Works will be responsible for

administering the direct grants.

(23) The Flemish Region and the LOMs will be responsible for administering the

deferrals of payment corresponding to subsidised loans.

2.6. The basic elements of the Measures

(24) Belgium notified two types of Measures:

i) an aid scheme providing direct grants to the Flemish airport operators

under section 3.1 of the Temporary Framework;

ii) two subsidised loans under section 3.3 of the Temporary Framework.

2.6.1. The aid scheme providing direct grants under section 3.1 of the

Temporary Framework

(25) The Belgian authorities indicated that the aid scheme has an estimated budget of

EUR 1 098 000.

(26) Under the scheme, each entity operating a Flemish regional airport will be

eligible for a direct grant of EUR 366 000. Belgium noted that the overall

maximum aid amount of EUR 800,000 per undertaking as set out in point 22(a) of

the Temporary Framework is respected, even taking into account that the LEM

Antwerpen and the LEM Oostende-Brugge are two subsidiaries of the same

parent company (see recital (11)).

(27) Aid may be granted under the scheme until 31 December 2020.

(28) The beneficiaries of the scheme providing direct grants under section 3.1 of the

Temporary Framework are the operators of the airports in the Flemish Region.

16 Order of the Flemish Government concerning the subsidy scheme aimed at limiting the impact of

COVID 19 on the liquidity position of the Flemish regional airports (Besluit van de Vlaamse Regering

betreffende de subsidieregeling die wordt toegepast teneinde de impact van COVID 19 op de

liquiditeitspositie van de Vlaamse regionale luchthavens te beperken).

7

(29) Furthermore, the scheme provides that the direct grants may be granted only to

undertakings that were not already in difficulty within the meaning of the General

Block Exemption Regulation (the “GBER”)17 on 31 December 2019.18

2.6.2. The subsidised loans under section 3.3 of the Temporary Framework

(30) The two other aid measures notified by the Belgian authorities under section 3.3

of the Temporary Framework are in favour of the LEMs only. Those two aid

measures consist of:

i) a deferral of payment of the annual compensation due by the LEMs to the

Flemish Region for the use of the statutory staff made available by the

Belgian authorities under the LOM-LEM service agreement for the year

2020;

ii) a deferral of payment of the concession fee owed by the LEMs to the

LOMs under the concession agreements for the year 2020.

(31) These forms of aid are equivalent to a subsidised loan in favour of the LEMs

under section 3.3 of the Temporary Framework.19 The granting authorities will

apply an interest to the amounts for which invoicing is suspended.

(32) The Flemish Region will grant a deferral of payment of the compensation for the

use of the statutory staff due by the LEMs for 2020, whose net amount is equal to

EUR 285 532 for the LEM Antwerpen and EUR 275 844 for the LEM Oostende-

Brugge.20

(33) The LOMs will also grant a deferral of payment of the concession fee due by the

LEMs for 2020, which amounts to EUR 255 810 for the LEM Antwerpen and

EUR 262 265 for the LEM Oostende-Brugge.

(34) The Belgian authorities confirmed that the total amount of the subsidised loans

does not exceed 25% of the total turnover of the beneficiaries in 2019. The loans

amount to 13% and 8.6% of the total turnover of the LEM Antwerpen and of the

LEM Oostende-Brugge respectively.

17 Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid

compatible with the internal market in application of Articles 107 and 108 of the Treaty, OJ L 187,

26.6.2014, p. 1.

18 As defined in Article 2(18) of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring

certain categories of aid compatible with the internal market in application of Articles 107 and 108 of

the Treaty, OJ L 187, 26.6.2014, p. 1.

19 Commission decision of 11 April 2020, case SA.56807 – Covid-19: Mesures de soutien en faveur des

aéroports wallons – Moratoire sur les redevances de concession, Belgium, paragraph 53; Commission

decision of 14 August 2020, case SA.58095 – Covid-19: Concession fee deferral for Burgas and

Varna airports, Bulgaria, paragraph 58.

20 This refers to the cost of statutory staff members that do not carry out safety and security tasks, which

are subsidised tasks financed by the Flemish Region.

8

Table 3: Total turnover of the LEMs in 2019

LEM Antwerpen LEM Oostende-Brugge

Total turnover 2019 EUR 4 203 079 EUR 6 244 050

(35) The Belgian authorities stated that normally the Flemish Region invoices the

compensation due for the use of the statutory staff on a quarterly basis, and the

LEMs have a 30-day delay for the payment. As to the concession fees for year

2020, they were due by the LEMs on 1 April 2020.21

(36) The deferrals of payment will be granted before 31 December 2020 by unilateral

decisions of the Flemish Region and of the LOMs so that the payments of the

compensation for the use of the statutory staff and of the concession fees will be

delayed until 31 December 2021.

(37) The interest rate for the subsidised loans has been fixed at 0.19% for the first year

and at 0.69% for the second year. It has been calculated in accordance with point

27(a) of the Temporary Framework.

Table 4: Calculation of the interest rate

Base rate22 Margin Combined

1 year -0.31% 0.5% 0.19%

2 year -0.31% 1% 0.69%

(38) The deferrals of payment will only benefit the LEM Antwerpen and the LEM

Oostende-Brugge.

(39) The Belgian authorities explained their approach on the basis that the LOM-LEM

structure has not yet been implemented at Kortrijk airport (see recital (12)).

Because Kortrijk airport is directly managed by the public company IKLW NV,

there is neither a concession agreement providing for the payment of a concession

fee nor a service agreement making statutory staff (civil servants) available to the

company running the airport.

(40) The Belgian authorities provided evidence that neither the LEMs nor their parent

company EGIS were undertakings in difficulty within the meaning of the GBER

on 31 December 2019.

21 See Clause 7.1 of the Concession Agreements of Antwerp and Ostend airports.

22 Commission Notice 2020/C 64/05 on current State aid recovery interest rates and reference/discount

rates applicable as from 1 March 2020 (published in accordance with Article 10 of the Commission

Regulation (EC) No 794/2004 of 21 April 2004 (OJ L 140, 30.04.2004, p. 1).

9

2.7. Cumulation

(41) The Belgian authorities confirmed that the aid measures granted under section 3.1

of the Temporary Framework may be cumulated with de minimis aid and/or with

aid under the General Block Exemption Regulation. In such a case, the Belgian

authorities committed to respect the provisions of the relevant Regulations that

will apply.

(42) The Belgian authorities confirmed that the two aid measures granted under

section 3.3 of the Temporary Framework will not be cumulated with aid granted

for the same underlying loan principal under section 3.2 of the Temporary

Framework. They also confirmed that as for such measures, the maximum

threshold on loans as specified in points 27(d) of the Temporary Framework is

respected per beneficiary.

2.8. Monitoring and reporting

(43) The Belgian authorities confirmed that they will respect the monitoring and

reporting obligations laid down in section 4 of the Temporary Framework,

including the obligation to publish relevant information on each individual aid

above EUR 100 000 on the national State aid website or the Commission’s IT tool

within 12 months from the moment of granting.23

(44) The Belgian authorities also confirmed that they will keep detailed records of all

information relating to the aid measures to be granted and will provide it to the

Commission services upon request.

3. ASSESSMENT

3.1. Lawfulness of the Measures

(45) By notifying the scheme providing direct grants before putting it into effect, the

Belgian authorities have respected their obligations under Article 108(3) TFEU.

(46) However, as regards the subsidised loans under section 3.3 of the Temporary

Framework, the Commission notes that the deferral of some of the payments due

by the LEMs has already taken place without prior authorisation of the

Commission (see recital (35)). In particular, the LEMs have not paid the

compensation due for the use of the statutory staff for the first and second

quarters of 2020, nor the concession fees for year 2020, which were due on 1

April 2020.24

23 Referring to information required in Annex III to Commission Regulation (EU) No 651/2014, Annex

III to Commission Regulation (EU) No 702/2014 and Annex III to Commission Regulation (EU) No

1388/2014. For guarantees, loans and other forms of aid, the nominal value of the underlying

instrument will be inserted per beneficiary. For tax and payment advantages, the aid amount of the

individual aid may be indicated in ranges.

24 See Clause 7.1 of the Concession Agreements of Antwerp and Ostend airports.

10

(47) Therefore, the Commission regrets that Belgium has unlawfully granted non-

notified aid to the LEMs by means of deferrals of payment, contrary to Article

108(3) TFEU.

3.2. Existence of State aid

(48) For a measure to be categorised as aid within the meaning of Article 107(1)

TFEU, all the conditions set out in that provision must be fulfilled. First, the

measure must be imputable to the State and financed through State resources.

Second, it must confer an advantage on its recipients. Third, that advantage must

be selective in nature. Fourth, the measure must distort or threaten to distort

competition and affect trade between Member States.

3.2.1. State resources

(49) The Measures are financed through State resources, as they are supported via

public funds.

(50) Firstly, the Flemish Region will propose direct grants to the Flemish airports

operators.

(51) Moreover, the Flemish Region provides the statutory staff to the LEMs and

collects from the latter a compensation for the costs of that staff payable by the

LEMs. By waiving its right to collect the compensation for the use of the

statutory staff at the time when it is due to be paid, the Flemish Region is

effectively foregoing State resources for the duration of the deferral of the

payment of such cost.

(52) Finally, the Flemish Region owns the infrastructure of the airports of Antwerp

and Ostend. It manages them via the LOMs, the lessees of the airports

infrastructure, which are public entities 100% held by the Flemish Region (see

recital (10)). The LOMs collect the concession fees payable by the LEMs for the

operation and management of the respective infrastructures. By waiving their

right to collect the concession fee at the time when it is due to be paid, the LOMs

in essence forego State resources for the duration of the deferral of the payment of

the concession fees.

(53) The Belgian authorities do not contest that the notified Measures are imputable to

the Belgian State.

(54) The Commission concludes from the above that the notified Measures are

imputable to the Belgian State.

3.2.2. Selective advantage

(55) The Measures confer an advantage on the beneficiaries in the form of (i) direct

grants to the Flemish airport operators in the case of the scheme; and (ii) the

suspension for the airport operators of Antwerp and Ostend of the invoicing of the

compensation due for the use of the statutory staff and of the concession fees

payable for the year 2020 in the case of the subsidised loans. They thus relieve the

beneficiaries of costs that they would have had to bear under normal market

conditions.

11

(56) The advantage granted by the scheme providing direct grants is selective as it is

awarded only to the operators of Flemish regional airports, without there being

any element to indicate that they are in a distinct situation to that of other

undertakings.

(57) Likewise, the advantage granted by the subsidised loans in the form of the

suspension of the invoicing of the compensation due for the use of the statutory

staff and of the concession fees is selective as it is awarded only to the LEMs of

Antwerpen and Oostend-Brugge, without there being any element to indicate that

they are in a distinct situation to that of other undertakings.

3.2.3. Distortion of competition and effect on trade

(58) The Measures are liable to distort competition, since they strengthen the

competitive position of the beneficiaries. They also affect trade between Member

States, since the beneficiaries are active in the airport sector in which intra-Union

trade exists.

3.2.4. Conclusion on the existence of State aid

(59) In view of the above, the Commission concludes that the Measures constitute Sate

aid within the meaning of Article 107(1) TFEU.

3.3. Compatibility

(60) Since the Measures involve aid within the meaning of Article 107(1) TFEU, it is

necessary to consider whether the Measures are compatible with the internal

market and in particular with Article 107(3)(b) TFEU.

(61) Pursuant to Article 107(3)(b) TFEU, the Commission may declare compatible

with the internal market aid “to remedy a serious disturbance in the economy of a

Member State”.

(62) By adopting the Temporary Framework on 19 March 2020, the Commission

acknowledged in section 2 that “the COVID-19 outbreak affects all Member

States and that the containment measures taken by Member States impact

undertakings”. The Commission concluded that “State aid is justified and can be

declared compatible with the internal market on the basis of Article 107(3)(b)

TFEU, for a limited period, to remedy the liquidity shortage faced by

undertakings and ensure that the disruptions caused by the COVID-19 outbreak

do not undermine their viability, especially of SMEs”.

(63) Flemish airports, like all European airports, have been suffering from the collapse

of air traffic linked to the COVID-19 crisis and are particularly exposed to the

global economic slowdown caused by it. The decrease in traffic has led to a

proportional decrease in the airports revenues, while their costs vary little.

(64) According to the estimates provided by the Belgian authorities, as a result of the

COVID-19 crisis, this year the LEM Antwerpen expects a decrease in turnover of

EUR […]; the LEM Oostend-Brugge expects a decrease in turnover of EUR […]

(see recital (15)). Therefore, the operators of the airports of Antwerp and Ostend

face a particularly severe liquidity crisis that can jeopardise their viability in the

absence of support measures (see recital (16)).

12

(65) In the light of the above, the Commission considers that the Measures put in place

to support the liquidity of the Flemish airport operators contribute to mitigating a

serious disturbance in the Belgian economy.

(66) The Measures aim at relieving the cash-flow needs of the Flemish airports at a

time when the surge of COVID-19 disrupts the normal functioning of the markets

and harms the real economy of the Member States.

(67) Furthermore, the Measures are designed to meet the conditions of two specific aid

categories (“limited amounts of aid” and “aid in the form of subsidised interest

rates for loans”) described in section 3.1 and section 3.3 of the Temporary

Framework.

(68) As regards the scheme providing direct grants and its compliance with section 3.1

of the Temporary Framework (see recitals (25)-(27)), the Commission considers

that the aid is necessary, appropriate and proportionate to remedy a serious

disturbance in the economy of a Member State and that all the conditions set out

in the Temporary Framework are met. In particular:

the overall direct grant aid does not exceed EUR 800 000 per undertaking

(considering all figures gross, before any deduction of tax or other

charges) (see recital (26));

the aid is granted on the basis of a scheme with an estimated budget (see

recital (25));

the aid will be granted no later than 31 December 2020 (see recital (27));

and

the aid may be cumulated with de minimis aid and/or with aid under the

GBER and, in that case, the provisions of the relevant Regulations will be

respected (see recital (41)).

(69) As for the deferrals of payment granted to the LEMs (see recital (30)), although

not an aid in the form of an interest rate loan, they can be equated with such aid

from an economic point of view. It is therefore appropriate to apply by analogy

the principles and conditions laid down in section 3.3 of the Temporary

Framework.25

(70) The Commission considers that those deferrals of payment are necessary,

appropriate and proportionate to remedy a serious disturbance in the economy of

a Member State and that all the conditions set out in the Temporary Framework

are met. In particular:

25 This is in line with the Commission’s decision practice, see e.g. State aid decision in case SA.56807

(2020/N) – BE - COVID-19: Mesures de soutien en faveur des aéroports wallons – Moratoire sur les

redevances de concession, see:

https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_56807.

13

the applicable interest rate for the subsidised loans is equal to the base rate

(1 year IBOR or equivalent as published by the Commission)26 available

on 1 January 2020 plus a credit margin of 50 basis points for the first year

and 100 basis points for the second year. The subsidised loans therefore

comply with point 27(a) of the Temporary Framework (recital (37));

the moratoria, equivalent to loans, will be granted before 31 December

2020 and will have variable durations of up to a maximum of 21 months,

depending on the date at which the payments were initially due (recital

(35)). The subsidised loans are therefore in line with point 27(c) of the

Temporary Framework;

for loans maturing after 31 December 2020, the amount of fees that

benefits from the moratoria does not exceed 25% of the beneficiary’s total

turnover in 2019 in line with the limits set out in point 27(d) of the

Temporary Framework (recital (34));

the moratoria partially cover the working capital requirements of the

beneficiary (recital (32)). They are therefore in line with point 27(f) of the

Temporary Framework; and

the cumulation rules set out in point 26 bis of the Temporary Framework

will be respected (recital (42)).

(71) In addition, the Commission verified that the subsidised loans are granted to

undertakings that were not in difficulty within the meaning of the GBER on 31

December 2019 (recital (40)). The subsidised loans are therefore in line with

points 22(c) and 27(g) of the Temporary Framework.

(72) Finally, the Belgian authorities have undertaken to comply with the rules

contained in section 4 of the Temporary Framework, concerning the monitoring

of aid and the transmission of annual reports (recital (43)).

26 Base rates calculated in accordance with Communication from the Commission on the revision of the

method for setting the reference and discount rates (OJ C 14, 19.1.2008, p. 6).

14

4. CONCLUSION

The Commission has accordingly decided not to raise objections to the aid Measures on

the grounds that they are compatible with the internal market pursuant to Article

107(3)(b) TFEU.

If this letter contains confidential information that should not be disclosed to third

parties, please inform the Commission within fifteen working days of the date of receipt.

If the Commission does not receive a reasoned request by that deadline, you will be

deemed to agree to the disclosure to third parties and to the publication of the full text of

the letter in the authentic language on the Internet site:

http://ec.europa.eu/competition/elojade/isef/index.cfm.

Your request should be sent electronically to the following address:

European Commission,

Directorate-General Competition

State Aid Greffe

B-1049 Brussels

Stateaidgreffe@ec.europa.eu

Yours faithfully,

For the Commission

Margrethe VESTAGER

Executive Vice-President