The Commission announced today that it has approved, in accordance with EU state aid rules, the € 86.6 million Cyprus program “to support companies active in the tourism sector (including tour operators, hotel operators and car rental companies). affected by the pandemic ”.
According to a written statement issued in Brussels, “the Commission has found that the program is necessary, appropriate and proportionate for the recovery of a serious disturbance in the Cypriot economy at a time when the normal functioning of the tourism and organized travel market is severely disrupted by the pandemic , in accordance with Article 107 (3) (b) TFEU and the general principles set out in the provisional State aid framework. ”
The Commission states that it has assessed the status under Article 107 (3) (b) of the Treaty on the Functioning of the European Union (TFEU), which allows it to adopt State aid measures to address a serious disturbance in a Member State approved the measure under EU state aid rules.
In addition, the Commission notes that the system is in line with the objectives of Recommendation (EU) 2020/648 of 13 May 2020, with the aim of making coupons an attractive and reliable alternative to cash refunds.
According to the Commission, “public support will take the form of public guarantees aimed at covering vouchers (ie credit notes) issued by the beneficiaries to either consumers or tour operators for canceled travel packages or individual tourist services booked before from 31 October 2020. ”
“The program aims to support tourism service providers facing significant revenue losses and liquidity shortages due to the coronavirus epidemic and restrictive measures to be taken by Cyprus and other governments to curb the spread of the virus,” the commission said.