COVID-19 Key EU Developments, Policy & Regulatory Update No. 25

COMPETITION & STATE AID

State Aid

EU prolongs and expands the State Aid Temporary Framework (see here and here)

On 13 October 2020, the European Commission decided to prolong and extend the scope of the State Aid Temporary Framework as follows:

• Extension of Temporary Framework: All sections of the Temporary Framework are prolonged for six months until 30 June 2021, except the section that enables recapitalization support, which is prolonged for three months until 30 September 2021 (originally due to expire on 30 June 2021). Before 30 June 2021, the European Commission will review the Temporary Framework and assess the need for further extensions or adjustments.
• Support for uncovered fixed costs: Member States may now contribute to the uncovered fixed costs (i.e. fixed costs not covered by profit contribution) of companies whose turnover declines by at least 30% during the eligible period, as compared to the same period in 2019, with a maximum amount