The European Commission said here on Wednesday that it has authorized temporary Finnish scheme aimed at companies in financing difficulties as a result of the credit squeeze in the current economic crisis.
The European Commission, the executive of the European Union (EU), said that the Finnish scheme, which allows granting aid of up to 500,000 euros per company, "meets the conditions of the commission's Temporary Framework for state aid measures to support access to finance in the current financial and economic crisis."
It said the scheme "is appropriate to remedy a serious disturbance in the entire Finnish economy, is limited in time, respects the relevant thresholds and applies only to companies that were not in difficulties before July 1, 2008."
"The Finnish measure facilitates the access of firms affected by the credit crunch to investment and working capital loans," Competition Commissioner Neelie Kroes said.
"This is an effective way of encouraging business investment and economic recovery, without unduly distorting competition," she said.
The Finnish measures can be applied until Dec. 31, 2010 and the scheme does not apply to firms that were already in difficulties on July 1, 2008.
"The Finnish authorities demonstrated that the scheme is necessary, proportional and appropriate to remedy a serious disturbance in the entire Finnish economy," said the commission.