Coronavirus: Commission Statement on consulting Member States on the proposal to extend State aid Temporary Framework

The European Commission has sent to Member States for consultation a draft proposal to extend the State aid Temporary Framework adopted on 19 March 2020 to support the economy in the context of the coronavirus outbreak. Within just a few days, the Commission has taken 14 State aid decisions based on this Temporary Framework to approve 22 national measures that provide much needed liquidity to European businesses in these difficult times.  The Commission is now proposing to extend the Temporary Framework by adding additional support possibilities, namely: (i) more support for coronavirus related research and development; (ii) more support for the construction and upgrading of testing facilities; (iii) more support for the production of products relevant to tackle to coronavirus outbreak; (iv) targeted support in the form of deferral of tax payments and/or suspensions of employers’ social security contributions; and (iv) targeted support in the form of wage subsidies for employees. The Commission aims to have the amended Temporary Framework in place next week. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Managing the economic impact of the coronavirus outbreak requires decisive, fast and – most importantly – coordinated action. EU State aid rules provide a toolbox for Member States to help companies in this difficult time. We will add to this toolbox to enable Member States to support companies that develop, test and produce much needed products to fight the coronavirus, such as vaccines, medical devices and protective equipment. We will also enable Member States to give targeted support to save jobs in sectors and regions that are hit particularly hard by the outbreak, by relieving them from tax payment and social contributions or giving wage subsidies. The Commission will continue to do all it can to support European governments and citizens.” The Statement is available online.