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€1bn Cypriot scheme covering Covid R&D gets green light


Government allowed to offer grants, loans or tax breaks to companies doing coronavirus-related work

The European Commission has approved a Cypriot scheme to provide €1 billion of state aid to small companies, which includes grants, repayable advances and tax advantages for those doing Covid-related R&D.

The massive scheme has 12 categories of state aid, with one specifically for R&D offering a bonus to companies doing work across EU borders.

Investments in facilities to develop vaccines, ventilators and protective clothing and for coronavirus-related manufacturing are also allowed, the Commission decided.

“The scheme will help these companies address the liquidity shortages they face due to the ongoing crisis,” Commission executive vice-president Margrethe Vestager said.

“We will keep working together with member states to find the best solutions to support companies during these difficult times.”