In Short
The Situation: The European Commission has
launched its largest ever stimulus package to support recovery of
EU economies from the COVID-19 pandemic's unprecedented
economic and social disruption. Each EU Member State must submit a
recovery plan and funding requests for Commission review. The
Commission has made clear that all investment projects must comply
with EU State aid rules to qualify for public funding.
The Result: Member States have until April 30
to submit national recovery plans to the Commission, which, in
turn, has committed to complete its State aid review within six
weeks.
Looking Ahead: Given the EU's warning on
State aid, Member States are likely to evaluate and select only
those projects that are compatible with those rules. Businesses
that have submitted or plan to submit investment projects to their
national governments for inclusion in the national recovery plan
should evaluate whether the project satisfies EU State
