The European Commission has approved a €15 million support scheme for Ireland-based inbound-tourism agents that have been adversely impacted by the COVID-19 pandemic.
According to The Irish Times, the money will come from the exchequer after the EU approved the support scheme, saying that it is compatible with the EU's "temporary framework" response to the pandemic.
The scheme's purpose is to mitigate sudden liquidity shortages that are being faced by companies that have been affected by the pandemic.
Payments will be made directly to affected businesses, and will be based on businesses' average inbound tourism revenue for the 2017 to 2019 period.
Aid will not exceed either the revenue lost by the eligible inbound businesses during 2020 or the average operating costs for the eligible inbound businesses during the 2017 to 2019 period, excluding payroll costs.
Aid will also not exceed €800,000 per company, and it will be granted by June 30, 2021, at the latest.
Necessary, Appropriate And Proportionate
The European Commission stated that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of an EU member state.
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