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

Author (Corporate)
Series Details C (2020) 4509
Publication Date 29/06/2020
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Summary:

Communication published by the European Commission on 29 June 2020, setting out a number of amendments to the Temporary Framework for State Aid implemented in light of the COVID-19 (coronavirus) pandemic.

Further information:

The Commission adopted a Temporary Framework for State aid measures during the pandemic on 19 March 2020, followed by amendments on 3 April and 8 May. The third amendment's main purpose is to provide targeted support to otherwise viable companies that have entered into financial difficulty as a result of the coronavirus outbreak. It extends the Temporary Framework to enable Member States to provide public support to all micro and small companies, even if they were already in financial difficulty in the past year.

Moreover, the Commission also adapted the conditions for recapitalisation measures for those cases where private investors contribute to the capital increase of companies together with the State. Finally, this Amendment also clarifies that aid should not be conditioned on the relocation of the production activity or of another activity to the Member State granting the aid.

Source Link https://ec.europa.eu/competition/state_aid/what_is_new/sa_covid19_3rd_amendment_temporary_framework_en.pdf
Related Link(s)
News
Reuters, 12/06/2020: EU state aid regulators to ease bailout rules for small firms, startups https://uk.reuters.com/article/idUKKBN23J2VW

Official
European Commission: Coronavirus: Commission Statement on consulting Member States on proposal to expand State aid Temporary Framework to further support micro, small and start-up companies and incentivise private investments (12 June 2020) https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_20_1054
European Commission: Press Release, 29/06/2020: State aid: Commission expands Temporary Framework to further support micro, small and start-up companies and incentivise private investments https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1221

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