European Commission gives Flemish Government’s plans the green light

The European Commission has given the green light to the Flemish Government plans to offer at total of 21 million euro in financial support to encourage companies to start producing protective material, medical equipment and other essential items to help in the fight against the novel coronavirus. The Flemish Government hopes that the incentives will encourage companies to switch at least some of their production to products that have proved essential during the public health crisis. 

These include vaccines, medical equipment, disinfectant and the collection and processing of data about the novel coronavirus epidemic.

The European Commission considers the support to be in accordance with its rules on state support that have been relaxed since the onset of the corona crisis. The Commission believes that the subsidies are essential in order to encourage companies to do carry out the investment necessary to allow them to switch at least some of their production.

Although funding from this package of support is not available to companies in difficulty the measure is considered to be “necessary, appropriate and proportional” the European Commission said in a press statement.

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