EU Commission Extends The State Aid Temporary Framework Further

On 8 May, the European Commission has adopted a second amendment to extend the scope of the State aid Temporary Framework adopted on 19 March 2020 to enable Member States to support the economy in the context of the coronavirus outbreak. This follows a first amendment adopted on 3 April 2020.

This second amendment sets out criteria based on which Member States can provide recapitalisations and subordinated debt to companies in need. The criteria are aimed at protecting the level playing field in the EU and ensuring that distortion of competition is limited, there is transparency in the use of aid received and there is compliance with other policy objectives such as environmental, digital transformation and prevention of fraud, tax evasion and avoidance.