On 19 March, the European Commission adopted a Temporary Framework that enables EU member states to “use the full flexibility foreseen under State aid rules to support the economy I the context of the COVID-19 outbreak”. *

This Framework makes it possible for EU countries to ensure that there is enough liquidity for businesses of all types and that it will be possible to maintain the economic activities during and after the COVID-19 outbreak. The Temporary Framework – in place at least until the end of December 2020 – provides 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
• Short-term export credit insurance

European Commission Executive Vice President Margrethe Vestager, who is in charge of competition policy, said in her statement: “The economic impact of the COVID-19 outbreak is severe. We need to act fast to manage the impact as much as we can. And we need to act in a coordinated manner. This new Temporary Framework enables Member States to use the full flexibility foreseen under State aid rules to support the economy at this difficult time.”

*Access the full European Commission press statement here

Watch a statement by Executive Vice President Margrethe Vestager here