Wednesday 15 April 2020

European Commission proposes further extension to Temporary Framework to support the economy




European Commission proposes further extension to Temporary Framework to support the economy

The European Commission has sent member states a draft proposal to further extend the Temporary Framework (Framework) on state aid in the context of COVID-19.

The Commission adopted the Temporary Framework on 19 March 2020 under Article 107(3)(b) of the TFEU which enables it to approve state support measures to remedy a serious disturbance to the economy of a member state.

The first version of the Framework covered five types of state aid and was extended on 3 April to cover five further measures.

The Commission now proposes to extend the scope of the Temporary Framework to enable member states to provide recapitalisations to businesses in need.

The Commission has reminded practitioners that the existing state aid tool kit including under the General Block Exemption Regulation and sector guidelines remains applicable. This allows a variety of measures and those supporting rescue and restructuring are a first resource.

https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_20_610

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