(Updated April 13, 2020)
Any measure by EU member states granting a selective financial
advantage to one or more companies and capable to distort
competition is considered state aid. State aid needs prior
notification and approval by the European Commission (EC). Similar
rules apply in relation to Norway, Iceland and Lichtenstein.
Rationale for this state aid control is to guarantee a level
playing field for businesses in the EU and to avoid wealthier
member states excessively favoring their companies.
Given the serious threat that COVID-19 poses not only for public
health but also for the entire economy, the EC has issued a
communication committing to a quick clearance procedure (so far,
approx. 24/48 hours) for all aid measures that member states are
planning to take. This refers in particular to measures supporting
sectors directly affected by the outbreak – like transport,
tourism, culture, hospitality and retail. When assessing aid for
these industries, the EC
