State Aid Temporary Framework – The European Commission Response To Covid-19

On 19 March 2020, the European Commission adopted a Temporary Framework for State aid measures to support the economy of Member States in the current Covid-19 outbreak (the "Temporary Framework"). The purpose of the Temporary Framework is to set out conditions under which the Commission will consider temporary State aid measures compatible with the Treaty on the Functioning of the European Union ("TFEU") and provide a framework for the rapid approval of measures notified by Member States compared with the traditional approval processes.  Since its adoption, several national State aid measures have been quickly approved by the Commission, pursuant to the Temporary Framework, including a scheme implemented to assist companies in Ireland with the economic repercussions of Covid-19. In this Insight, we provide an overview of how the Temporary Framework operates.