A Rescue & Restructuring (R&R) Scheme has been notified by my Officials to the Commission for approval. This scheme adheres to existing State Aid rules. While I do not expect there will be a need for the State to provide rescue/restructuring aid to companies, it is prudent to have contingency measures in place, so that we can respond swiftly to changing circumstances as necessary. Since the decision of the UK last July to exit the EU, my Department has been working with Enterprise Ireland and other stakeholders to develop a suite of measures to mitigate the potential effect of Brexit on Irish businesses.
The R&R scheme will apply to all SMEs who are in difficulty. Under the scheme an undertaking is considered to be in difficulty when, without intervention by the State, it will almost certainly be condemned to going out of business in the short or medium term
The aid will be granted in the form of equity support. The amount and intensity of any restructuring aid will be limited to the amount that is absolutely necessary up to a maximum of €10m.
The conditions for granting the aid include:
- The aid contributes to a well-defined objective of common interest;
- The need for a State intervention is shown;
- The aid measure is appropriate;
- The aid has an incentive effect;
- The aid is proportionate;
- Any undue negative effects on competition and trade between Member States are avoided; and
- The aid is transparent.
While awaiting approval, the scheme remains in draft form. However, once approved, it will be published and the detail of the scheme will then be available.
