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Covid–19 coronavirus and the EU State aid response

09 April 2020

The European Commission (Commission) has adopted a temporary framework for State aid measures to support the economy in the Covid-19 coronavirus outbreak (the Temporary Framework).

The Temporary Framework applies until the end of the 2020 calendar year and provides detailed guidance on what aid measures may be taken to remedy a serious disturbance in the economy of an EU Member State because of Covid-19. To date, the scope of the Temporary Framework has been extended twice to cover additional types of aid (most recently to cover recapitalisation and subordinated debt measures), and it is possible that further refinements/additions may be made to it as the situation develops. Meanwhile, the Commission is acting extremely swiftly to help ensure that national support schemes are put into place as quickly as possible, in some cases approving aid within a day or two of notification.

Read our overview for more information on the subject.  It explains the aid measures covered by the Temporary Framework, following its first extension on 3 April 2020,  and, in particular, which aid measures Member States can take without requiring prior approval of the Commission and how the Commission will assess measures that do need to be notified. 

Since this overview was published, the Temporary Framework has been extended for a second time to include recapitalisation measures that Member States may take to avoid the unnecessary demise of non-financial firms that were viable pre-Covid-19, and aid in the form of subordinated debt.  Read our alert for more details.