THE LEVEL PLAYING FIELD IN CRISIS MODE 67 The advantage of this aid category is that it is a simpler alternative to Article 107(2)(b) TFEU aid (compensation of losses caused by exceptional occurrences), as there is no need to prove any causal link between the pandemic/lockdown measures and the losses of the beneficiary. However, the scope of undertakings eligible for 3.12 TF aid is in principle narrower than those eligible for Article 107(2)(b) aid because of the minimum 30% turnover loss criterion. Also, the compensation of losses is limited to 70-90%, while in the case of Article 107(2)(b) aid, at least theoretically, full compensation of losses is possible (for instance if a business is completely closed down due to containment measures). The need to check for overcompensation, however, resembles the similar principle applied in Article 107(2)(b) TFEU based decisions. Also, 3.12 TF aid applies an exclusion to certain undertakings in difficulty, which is not a requirement for under Article 107(2)(b) TFEU. This simplified approach makes this category of aid ideal for helping undertakings in the tourism sectors, even for micro and small undertakings. The SA.59477146 case shows how 3.12 TF aid, a general aid category that enables the coverage of losses, can be used in much more specific circumstances, and how aid categories can be used to complement each other. In November 2020, the Hungarian government imposed a lockdown, which affected hotels and accommodation providers, and naturally led to the cancellation of reservations made before the lockdown. The Hungarian government launched a scheme to compensate these service providers for cancellations made prior to the lockdown for a period of one month after the start of the lockdown. The aid amount was equal to 80% of the value of cancelled reservations (foregone revenue). The scheme, as approved by the Commission, included two aid categories. The compensation for the foregone revenue was granted as 3.12 TF aid to those service providers that qualified for aid under 3.12 TF (their revenues dropped by 30% in the eligible one-month period compared to the same period of 2019 and had sufficient losses – uncovered fixed costs – to cover the compensation amount) and the rest received the aid as 3.1 TF aid. It was expected that most eligible undertakings would qualify for 3.12 TF aid because of the lockdown anyway, but the addition of 3.1 TF aid as a secondary aid category made sure 146 Commission decision C(2020) 9106 final of 10 December 2020 (SA.59477 (2020/N) COVID-19: Scheme for the protection of the economy during the second state of emergency).
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