The rules on state aid have been some of the first to be challenged by Covid-19 for the obvious reason that the pandemic had immediate economic repercussions on virtually any sectors, thus requiring instant financial support from several if not all of the EU Members states (plus the UK). On the 16th of March, Competition Commissioner Vestager sent to Member States for consultation a draft proposal for a State aid Temporary Framework to support the economy in the context of the Covid-19 outbreak. On the 19th, the Commission adopted what would become the first version of a Temporary Framework (TF) that acknowledged the necessity of Member States to act swiftly and, at the same time, laid down the options available to the same Member States in terms of state aid. The word “Temporary” refers to the time limit of these measures, which will be in place until the end of 2020. The fist temporary framework was developed mainly 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.
Continue reading “The EU Response to Covid-19: the New Temporary Framework of State Aid Control”