COVID-19 Outbreak And Adjusted EU State Aid Control

The unique EU State aid control law requires, in principle, prior notification by Member States and approval by the Commission of all State aid. During a time of crisis, like the COVID-19 pandemic, EU law allows for a flexible approach for approving urgent State aid. In this post, we discuss the current state of play in the EU and offer some general items to consider for undertakings receiving State aid during this extraordinary time.

Crucial need for EU State aid control

The concept of EU State aid control is unique to the EU only (although more and more included by the EU in Free Trade Agreements with other regions). In a nutshell, this control consists of prior notification by the Member States and approval by the European Commission of all State aid, except for de minimis measures and aid covered by the so-called General Block Exemption Regulation, which does not currently cover most of the measures adopted under this COVID-19 outbreak. This control is combined