Sat. Aug 13th, 2022

As announced in May 2022, the State aid COVID Temporary Framework will not be extended beyond the current expiry date of 30 June 2022, for most of the tools provided. On 19 March 2020, following the coronavirus outbreak, the Commission promptly adopted the COVID Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy and the most severely affected companies and sectors in a timely, targeted and proportionate way, while protecting the level playing field in the Single Market.

Since its adoption, the Temporary Framework has been amended six times, last on 18 November 2021. As of today, the Commission has taken over 1350 decisions approving around 980 national measures notified by all 27 Member States for an estimate total State aid amount approved of approximately €3.2 trillion. In light of the improvement of the sanitary crisis in Europe and the progressive lifting of the related restrictive measures, the Temporary Framework will not be extended beyond 30 June 2022, with some exceptions.

In particular, investment and solvency support measures may still be put in place until 31 December 2022 and 31 December 2023 respectively, as already provided for under the existing rules. In addition, the Temporary Framework already provides for a flexible transition, under clear safeguards, in particular for the conversion and restructuring options of debt instruments, such as loans and guarantees, into other forms of aid, such as direct grants, until 30 June 2023.

The Commission will continue to closely monitor future developments and will act fast again if the need arises. In addition, the Commission is well aware that the positive signals of recovery from the sanitary crisis are now being overshadowed by Putin’s cruel and unlawful war of aggression against Ukraine. This is why, on 23 March 2022,  we have adopted a Temporary Crisis Framework providing Member States with the right toolbox to address the consequences of the current crisis and to support severely impacted companies and sectors.

Finally, under existing EU State aid rules, there are many other possibilities constantly available to Member States, such as measures providing compensation to companies for damages directly suffered due to exceptional circumstances or measures helping companies cope with liquidity shortages and needing urgent rescue aid. A summary infographic will be soon available here.