The European Commission has published urgent COVID-19 state aid
guidance confirming EU member states can use existing flexibility
in the state aid regime to support the private sector.
The European Union state aid regime prohibits state financial
assistance to industry unless it is made in accordance with the
parameters of the rules. There are controls over the types of
industry that can be offered different types of public funding. The
EU state aid regime continues to apply to the United Kingdom during
the implementation phase of Brexit.
The European Commission has just (13 March 2020) published
urgent COVID-19 state aid guidance to EU member
states. It confirms that member states are encouraged to use the
existing flexibility in the state aid regime to support their
economies due to coronavirus.
