24 Mar 2020

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Coronavirus and state aid challenges

The corona pandemic is first and foremost a health crisis but will unfortunately have a major economic impact.

All sectors of the economy will be affected, and the governments of the Member States will all – whatever their political beliefs concerning the intervention of the State in the economy – take action to support undertakings. In order to do so, public authorities will however need to comply with the state aid rules.

The Commission has been working on new rules that will enable national authorities to provide the necessary support to address the exceptional circumstances we are faced with together with the need to react rapidly.

On 19 March, the Commission adopted a new Temporary Framework to include the possibility to grant de minimis aid up to EUR 800 000 and specific rules regarding guarantees.

It is fundamental both for the sake of the undertakings and for the public authorities to carefully structure the support to ensure that any aid granted is compatible and effective as soon as possible and the necessary support can help the economies in the EU.

Clayton & Segura will continue monitoring the developments in the economy, the legislation and the state aid rules and providing state aid expertise across the EU and EEA to help managing the challenges of this unprecedented situation.