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08 Apr 2020

The European Commission's Temporary Framework for State aid - impact on certain industries

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We are pleased to share with you our report on the European Commission’s recently-published Temporary Framework for State aid, which aims to make it easier for Member States to provide relief to stricken businesses during the COVID-19 outbreak. 

Key points to take away from this report:

  • Member States may now (with Commission approval) provide various forms of relief schemes to both large corporations and SMEs, including:

    • Up to €800,000 worth of relief per company;

    • State guarantees for corporate loans;

    • Subsidised State loans at low interest rates;

    • Safeguards for banks that channel State aid to customers; and

    • Short term export credit insurance.
  • Usual forms of State aid are still available.

  • The Commission has set up a hotline to deal with queries on State aid and is approving measures on an expedited basis.

  • Banking, rail and aviation are some of the sectors most likely to benefit from the Temporary Framework and other forms of State aid.

  • First time since the financial crisis of 2008 that the Commission has temporarily relaxed the usual rules on State aid.

Please click here to read the report.

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KEY CONTACT

Marta Isabel Garcia

Marta Isabel Garcia
Partner

T:  +44 20 7809 2141 M:  +44 7985 716 668 Email Marta Isabel | Vcard Office:  London

Anna Victoria Delahey

Anna Victoria Delahey
Senior associate

T:  +44 20 7809 2013 M:  Email Anna Victoria | Vcard Office:  London

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