The European Commission on 19 March adopted a Temporary Framework for State Aid to support the economy in the context of the COVID-19 outbreak, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union, which enables the Commission to approve national support measures to remedy a serious disturbance to the economy of European Union member states.
The Temporary Framework provides for five types of aid:
The Temporary Framework includes a number of safeguards, for example, linking the subsidised loans or guarantees to businesses to the scale of their economic activity, by reference to their wage bill, turnover, or liquidity needs, and to the use of the public support for working or investment capital.
The Temporary Framework will be in place until 31 December 2020, but can be extended. It complements the possibilities for member states to design measures in line with existing EU State aid rules, as set out in the Commission’s communication on a coordinated economic response to the COVID-19 outbreak of 13 March.
The Commission has also published a template document setting out the information that member states should provide when notifying under Article 107(2)(b) of the Treaty on the Functioning of the European Union aid for damage caused as a result of an exceptional occurrence. See also the Commission’s press release.
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