Abstract
This article focuses on the transformations and changes in the area of state aid control prompted by the COVID-19 pandemic. It attempts to provide a first assesment on the European Commission Temporary Framework on state aid measures to support the economy in the outbreak. It discusses whether the measures adopted have been effective and managed to guarantee on the one side the possibility of Member States to take swift and effective action as to ensure short and long term liquidity to undertakings affected by COVID 19 and on the other to preserve fair competition an respect of state aid rules control.
Highlights
This article focuses on the transformations in the area of State aid control prompted by the COVID-19 pandemic and provides a first assessment on the European Commission Temporary Framework on State aid measures to support the economy
It discusses whether the measures adopted have been effective and have managed to guarantee Member States the possibility to take action as to ensure small undertakings affected by COVID 19 long-term liquidity and to preserve fair competition in what regards State aid rules control
According to a WTO estimate, trade is expected to fall between 13% and 32% as a result of COVID-19.3 As for possible comparators4, some similarities can be drawn with the 2008 financial crisis, there are notable differences
Summary
22 For instance, as provided for by the TF (paragraph 14), it is still be possible for Member States to notify the Commission about “aid schemes to meet acute liquidity needs and support undertakings facing financial difficulties” under Article 107 (3)(c), that is, about “aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest”.
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