BRUSSELS, Jan 19 (Reuters) - The European Commission approved on Monday a temporary plan by French and Portuguese governments to give companies hit by the economic and credit crisis up to 500,000 euros ($665,200) in aid.
The Commission, which polices competition in the 27-nation European Union, said the measures would give a shot in the arm to businesses affected by the current economic situation without leading to undue distortions of competition.
"The maximum amount of aid does not exceed 500,000 euros per company, and the scheme applies only to businesses which were not in difficulty from July 1, 2008, or which were not in difficulty then but became so subsequently as a result of the economic crisis," the Commission said.
The Commission said last month it would allow a temporary easing of state aid rules for companies to access loans and capital in a bid to lessen the impact of the global credit crunch on the real economy.
The move is part of the European Union executive's broader economic recovery plan approved by EU leaders, which includes fiscal stimulus worth 200 billion euros ($266 billion) or 1.5 percent of EU gross domestic product. (Reporting by Foo Yun Chee and Bate Felix, editing by Will Waterman)