COVID-19: EU State Aid Considerations

With the outbreak of the COVID-19 pandemic, global economies are inevitably facing and experiencing a major shock. In response to this, the EU Commission has set out a European coordinated response to counter the economic impact of this epidemic. As part of its response, the Commission has examined State Aid rules, as an attempt to aid European businesses during this crucial time.

As a general rule, state aid, an advantage which may take any form and granted on a selective basis to undertakings by national authorities, is prohibited unless it is justified by reasons of general economic development. By Article 107(3)(b) state aid is allowed where the aid is aimed at remedying a serious disturbance in the EU Member State's economy.