Fourth Amendment to the Temporary Framework for State aid measures to support the economy in the COVID-19 outbreak and amendment to the Annex to the Communication on the application of Articles 107 and 108 TFEU to short-term export-credit insurance

Author (Corporate)
Series Title
Series Details C 340I, Pages 1-10
Publication Date 13/10/2020
Content Type

Summary:

Communication published by the European Commission on 13 October 2020, setting out the 4th amendments to the Temporary Framework for State Aid implemented in light of the COVID-19 (coronavirus) pandemic. It also introduces amendments to the Annex to the Communication on the application of Articles 107 and 108 TFEU to short-term export-credit insurance.

Further information:

The Commission adopted in March 2020 a new State aid Temporary Framework aimed at supporting the economy in the context of the coronavirus outbreak, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union. The framework was first amended on 3 April to increase possibilities for public support to research, testing and production of products relevant to fight the coronavirus outbreak, to protect jobs and to further support the economy. A second amendment was published on 8 May to enable recapitalisation and subordinated debt measures, followed by another amendment on 29 June to further support micro, small and start-up companies and to incentivise private investments.

The fourth amendment prolongs and extends the scope of all sections of the Temporary Framework. It also introducesĀ  new measure to enable Member States to support companies facing a decline in turnover during the eligible period of at least 30% compared to the same period of 2019 due to the outbreak. It adapts the conditions for recapitalisation measures under the Temporary Framework, in particular for the State's exit from the recapitalisation of enterprises where the State was an existing shareholder prior to the recapitalisation.

Finally, taking into account the continued general lack of sufficient private capacity to cover all economically justifiable risks for exports to countries from the list of marketable risk countries, the amendment provides for an extension of the temporary removal of all countries from the list of ā€œmarketable risk" countries under the Short-term export-credit insurance Communication.

Source Link https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.CI.2020.340.01.0001.01.ENG
Related Link(s)
Official
European Commission: Coronavirus: Commission Statement on consulting Member States on proposal to prolong and adjust State aid Temporary Framework (2 October 2020) https://ec.europa.eu/commission/presscorner/detail/en/statement_20_1805
European Commission: Press Release, 13/10/2020: State aid: Commission prolongs and expands Temporary Framework to further support companies facing significant turnover losses https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1872

Subject Categories
Subject Tags
Keywords ,
International Organisations
Record URL https://www.europeansources.info/record/?p=523058