The EU Commission authorises pan-European guarantee fund for companies affected by the Covid-19 outbreak

On 14 December 2020, the Commission authorised the creation of a € 25 billion Pan-European Guarantee Fund managed by the European Investment Bank (“EIB”) to support companies affected by the coronavirus outbreak. The creation of this Pan-European Guarantee Fund (the “Fund”) was endorsed by the European Council in April 2020.

All Member States are entitled to participate in this Fund – so far 21 have decided to do so. The participants will contribute to the Fund – in proportion to their contribution to the EIB capital – in the form of guarantees granted on the basis of their national budget. Eligible undertakings will then be allowed to benefit from these State guarantees, to cover part of their losses related to the Covid-19 outbreak.

Based on the information provided in the press release (the State aid decision is not yet publicly available), the Commission has concluded that the state aid to be provided by the Fund will contribute to managing the economic impact of the coronavirus in the 21 participating Members States. These measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy, in line with Article 107(3)(b) TFEU and the general principles set out in the Covid-19 State aid Tem- porary Framework.

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Auteurs

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

Citation

Francesco Pili, Markus Wellinger, The EU Commission authorises pan-European guarantee fund for companies affected by the Covid-19 outbreak, 14 décembre 2020, e-Competitions January 2021, Art. N° 98582

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