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.