On 28 November 2023, the European Commission decided to extend its 2014 Guidelines on State aid for rescuing and restructuring of non-financial undertakings in difficulty until 31 December 2025.
These guidelines allow Member States to offer support to struggling companies, albeit under stringent conditions, recognising that such aid can be highly distortive. Under these strict conditions, rescue aid can be provided for a maximum duration of six months. Any extension beyond this timeline necessitates either repayment of the aid or submission of a restructuring plan by Member States to the Commission for evaluation.
Set to expire at the close of 2023, the Commission opted to extend the guidelines for an additional two years without any substantive changes. This decision aimed to prevent a legal vacuum and ensure stakeholders' clear understanding and consistency in the application of these rules while concurrently exploring potential updates of the Guidelines.
For further information: see Commission’s Press Release