On 30 September 2021, the Commission launched its consultation with Member States on a draft proposal to prolong the State aid Temporary Framework until 30 June 2022 and to extend its scope with the intended aim of further accelerating economic recovery.
The Temporary Framework, to recall, was initially adopted on 19 March 2020 (and most recently amended on 28 January 2021) in view of supporting the economy following the COVID-19 outbreak through various aid measures which, in particular, could be rapidly approved upon notification to the Commission.
In view of signs of economic recovery, the Commission is proposing a limited prolongation of the Temporary Framework with the objective of ensuring against suddenly discontinuing aid to businesses still impacted by the crisis, and instead enabling a coordinated phase-out of such support.
In addition, for a limited period beyond 30 June 2022, the Commission proposes to allow Member States to grant:
- Investment support measures towards a sustainable recovery, in order to help Member States address the investment gap resulting from the crisis while preserving competition; and
- Solvency support measures to leverage private funds and investment in undertakings, in particular small and medium-sized enterprises (SMEs) and small mid-caps, by providing them with access to equity financing.
Member States may now provide feedback on the Commission’s draft proposal on amending the Temporary Framework, which the Commission will take into account in determining the way forward. The Commission, thus far, has taken more than 650 decisions in all Member States, including based on the Temporary Framework, to enable support worth over €3 trillion in total to companies affected by the pandemic.
