Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak

Author (Corporate)
Series Details C (2020) 1863
Publication Date 19/03/2020
Content Type

Summary:

Temporary Framework adopted by the European Commission on 19 March 2020, relating to State aid rules and support to the economy in the context of the COVID-19 outbreak.

Further information:

The Temporary Framework enables Member States of the European Union (EU) to ensure that sufficient liquidity remains available to businesses of all types and to preserve the continuity of economic activity during and after the COVID-19 outbreak. It is based on Article 107(3)(b) TFEU, and it recognises that the economy across the EU is experiencing a serious disturbance. The Temporary Framework provides for five types of aid:

  • Direct grants, selective tax advantages and advance payments;
  • State guarantees for loans taken by companies from banks;
  • Subsidised public loans to companies;
  • Safeguards for banks that channel State aid to the real economy;
  • Short-term export credit insurance.

This Framework was put forward alongside a number of other possibilities, many of which set out in a Communication published by the European Commission on economic coordination in the context of the sanitary crisis. The Temporary Framework was set to be in place until December 2020.

A number of schemes from different Member States were later approved in the framework of this Temporary Framework.

Source Link https://ec.europa.eu/competition/state_aid/what_is_new/sa_covid19_temporary-framework.pdf
Related Link(s)
Commentary and Analysis
KPMG: Insights, 20/03/2020: Euro Tax Flash from KPMG's EU Tax Centre https://home.kpmg/xx/en/home/insights/2020/03/etf-428-european-commission-adopts-temporary-framework-for-state-aid-measures.html
Eversheds Shuterland: Article, 23/03/2020: Coronavirus - The EU and the UK prepare State aid packages in response to COVID-19 crisis – Europe https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/coronavirus/Coronavirus-EU-UK-prepare-State-aid-packages-Europe_230320
Kluwer Competition Law: Blog, 24/03/2020: EU State Aid and COVID-19 http://competitionlawblog.kluwercompetitionlaw.com/2020/03/24/eu-state-aid-and-covid-19/

News
The Wall Street Journal, 19/03/2020: EU Relaxes Rules on Government Aid to Companies in Face of Virus https://www.wsj.com/articles/eu-relaxes-rules-on-government-aid-to-companies-in-face-of-virus-11584647315
Bloomberg, 19/03/2020: EU Relaxes State Aid Rules to Help Nations Combat Virus Crisis https://www.bloomberg.com/news/articles/2020-03-19/eu-relaxes-state-aid-rules-to-help-nations-combat-virus-crisis

Official
European Commission: Statement by Executive Vice-President Margrethe Vestager on a draft proposal for a State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak (17 March 2020) https://ec.europa.eu/commission/presscorner/detail/en/statement_20_479
European Commission: Press Release, 19/03/2020: State aid: Commission adopts Temporary Framework to enable Member States to further support the economy in the COVID-19 outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_496
European Commission: Press Release, 21/03/2020: State aid: Commission approves Danish guarantee scheme for SMEs affected by Coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_505
European Commission: Press Release, 21/03/2020: State aid: Commission approves French schemes to support economy in Coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_503
European Commission: Press Release, 22/03/2020: State aid: Commission approves €50 million Italian support scheme for production and supply of medical equipment and masks during Coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_507
European Commission: Press Release, 22/03/2020: State aid: Commission approves German measures to support economy in Coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_504
European Commission: Press Release, 22/03/2020: State aid: Commission approves €3 billion Portuguese guarantee schemes for SMEs and midcaps affected by Coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_506
European Commission: Press Release, 23/03/2020: State aid: Commission approves state support for €250 million Latvian subsidised loan scheme and loan guarantee scheme for companies affected by coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_508
European Commission: Press Release, 24/03/2020: State aid: Commission approves €300 million Luxembourg scheme to support companies affected by coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_516
European Commission: Press Release, 24/03/2020: State aid: Commission approves German guarantee measure to further support economy in coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_517
European Commission: Press Release, 24/03/2020: State aid: Commission approves German direct grant scheme to support companies affected by coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_524
European Commission: Press Release, 24/03/2020: State aid: Commission approves €20 billion Spanish guarantee schemes for companies and self-employed affected by coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_520
European Commission: Press Release, 25/03/2020: State aid: Commission approves UK schemes to support SMEs affected by coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_527
European Commission: Press Release, 25/03/2020: State aid: Commission approves Italian State guarantee scheme to support SMEs affected by coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_530
European Commission: Press Release, 25/03/2020: State aid: Commission approves €1.3 billion Danish scheme to compensate self-employed for damages suffered due to coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_515
European Commission: Press Release, 27/03/2020: State aid: Commission approves Luxembourg guarantee measure to further support economy in coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_540
European Commission: Coronavirus: Commission Statement on consulting Member States on the proposal to extend State aid Temporary Framework (27 March 2020) https://ec.europa.eu/commission/presscorner/detail/en/statement_20_551
European Commission: Press Release, 30/03/2020: State aid: Commission approves €1.2 billion French 'Fonds de solidarité' scheme for small enterprises in temporary financial difficulties due to coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_556
European Commission: Press Release, 30/03/2020: State aid: Commission approves €130 million Danish guarantee scheme for SMEs with export activities affected by coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_555
European Commission: Press Release, 30/03/2020: State aid: Commission approves €1.75 billion Estonian schemes to support economy in coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_559
European Commission: Press Release, 31/03/2020: State aid: Commission approves French scheme deferring payment by airlines of certain taxes to mitigate economic impact of coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_514
European Commission: Press Release, 31/03/2020: State aid: Commission approves €200 million Irish scheme to support the economy in the current coronavirus outbreak https://ec.europa.eu/commission/presscorner/detail/en/ip_20_557

Subject Categories
Subject Tags
Keywords ,
International Organisations