The EU Commission prolongs and expands COVID-19 temporary framework to further support companies facing significant turnover losses

On 13 October 2020, the Commission prolonged the scope of the COVID-19 Temporary Framework adopted on 19 March 2020. All sections of the Temporary Framework have been prolonged for six months (i.e. until 30 June 2021), and the section to enable recapitalisation support is prolonged for three months until 30 September 2021. In addition, the Commission also approved certain amendments to the Temporary Framework:

  1. Support for uncovered fixed costs of companies. This amendment allows Member States to support companies facing a decline in turnover during the eligible period of at least 30% compared to the same period of 2019 due to the coronavirus outbreak. The support will contribute to a part of the beneficiaries’ fixed costs that are not covered by their revenues, up to a maximum amount of € 3 million per undertaking.
  2. Exit of the State from previously State-owned companies. The Commission also amended the conditions for recapitalisation measures. The amendments concern, in particular, the scenario of a State’s exiting from the recapitalisation of enterprises where the State was an existing shareholder prior to the recapitalisation.
  3. Extension of the temporary removal of all countries from the list of “marketable risk” countries. The Commission has extended the temporary removal of all countries from the list of “marketable risk” countries under the Short-term export-credit insurance Communication until 30 June 2021.

PDF Version

Authors

  • Van Bael & Bellis (Brussels)
  • Van Bael & Bellis (Brussels)

Quotation

Francesco Pili, Markus Wellinger, The EU Commission prolongs and expands COVID-19 temporary framework to further support companies facing significant turnover losses, 13 October 2020, e-Competitions October 2020, Art. N° 97810

Visites 37

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues