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ARTICLE · 13 APRIL 2020

COVID 19: EU Commission Announces Temporary State Aid Measures

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Following the recent outbreak of the COVID-19 virus across Europe, Member States have adopted various public health measures, such as social distancing, travel restriction...

MaltaCoronavirus (COVID-19)
Andrew Zammit
Andrew Zammit
Gayle Kimberley
Gayle Kimberley
Annabel Hili
Annabel Hili
Amanda Vella
Amanda Vella
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State Aid

Following the recent outbreak of the COVID-19 virus across Europe, Member States have adopted various public health measures, such as social distancing, travel restrictions, as well as mandatory and voluntary quarantines, all of which have an immediate effect on demand and supply. This has inevitably created a ripple effect, causing a devastating blow to several undertakings and their employees, especially in the health, tourism, culture, retail and transport sectors.

'State aid' is a term that refers to a regulated form of government assistance given to undertakings on a discretionary basis. The laws on state aid enable Member States to take swift and effective action to support individuals and companies, including small and medium enterprises ('SMEs') facing economic difficulties during this time. However, under EU rules, the governments of Member States are allowed to provide state aid only with approval from the European Commission. Furthermore, if

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