EU Commission Approves €800,000 Portuguese Scheme to Support Azores’ Passenger Transport Sector

Such a measure has been approved under the State aid Temporary Framework and follows two other Portuguese schemes to support the passenger transport sector in the Azores that the Commission approved in June and September 2021, AtoZSerwisPlus.pt reports.

It has been explained that under this scheme, the support to the transport sector in the Azores will take the form of direct grants. In addition, it has been emphasised that the measure will be open to collective passenger transport companies of all sizes that are active in the Azores.

By approving such a measure, the Commission noted that they aim to address the liquidity need of the beneficiaries as well as help them continue their activities during and after the pandemic.

After being concluded that his scheme is in line with the conditions that have been set out in the Temporary Framework, the Commission established that the measures would not exceed the amount of €2.3 million per company.

Additionally, it has been revealed that the aid will be granted by the end of June.

“The Commission concluded that the measure is necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions of the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules,” the Commission added.

Except for approving such a measure for Portugal, the Commission also approved a measure for Spain earlier in March.

Under the EU State aid rules, the Commission approved a €120 million Spanish scheme to promote freight traffic to shift from road to sustainable rail transport.

“The €120 million scheme approved today will contribute to improving the competitiveness and greening of rail freight transport in Spain. It will also support the shift from road to rail, in line with the objectives of the European Green Deal,” Executive Vice-President Margrethe Vestager said, commenting on the approval of this scheme.

It has been explained that this Spanish measure, which aims to promote rail as a more environmentally friendly means of transportation, will be fully funded through the Recovery and Resilience Facility. Similar to the other measure mentioned above, this one will also take the form of direct grants. The amount of the aid will be calculated based on the environmental performance of the rail companies.