Estonian businesses received 472.6 million euros in state aid

Estonian companies received 472.6 million euros in state aid and de minimis aid last year, ERR reported. The Enterprise and Innovation Foundation was the largest provider, followed by the Ministry of Culture, Elering and the Agricultural Registers and Information Board.

The Ministry of Finance submitted an overview of the aid provided last year to the government. State aid, including crisis aid, accounted for 381.5 million euros of the total, with crisis aid making up 4.1 million euros.

The total was 40.8 million euros higher than the previous year. The Enterprise and Innovation Foundation provided 82.48 million euros, the Ministry of Culture 78.64 million euros and Elering 73.31 million euros. The foundation accounted for nearly 27 percent of the total aid.

State aid requires approval from the European Commission. Estonia submitted seven state aid notifications to the commission last year. Among other measures, the Ministry of Regional Affairs and Agriculture sought approval for exceptional investment support for agricultural producers to help prevent foot-and-mouth disease.

Grants accounted for 91 percent of total state aid, while nine percent was provided through tax exemptions and tax benefits.

A further 91.1 million euros was provided as de minimis aid. This is not classified as state aid because the amounts are considered too small to distort competition. Most de minimis aid was provided as grants, while just over two percent was issued as guarantees.

EU member states provided a combined 168.23 billion euros in state aid last year. The figure excludes railway subsidies and aid to the financial sector.

In the European Union, state aid refers to assistance directed at certain businesses or the production of specific goods that gives recipients an advantage and may harm competition.