The Commission’s Temporary Framework for State aid measures supporting the economy during the Covid-19 pandemic (the “Temporary Framework”) is proving to be a success. More than 200 Member State schemes and individual measures have been cleared under the Temporary Framework since its adoption in March 2020. It seeks to provide the European economy with a platform to recover from the crisis while limiting distortions of competition in the Internal Market.
On 28 January 2021, the European Commission (“Commission”) adopted a fifth amendment (the “Amendment”) to the Temporary Framework (see our post on the Temporary Framework here, of the first amendment here and of the second amendment here). The third amendment expanded mostly the Framework to further support micro, small and start-up companies and incentivise private investments. The fourth amendment mostly prolonged the validity of the Framework and introduced new possibilities for the State to exit from recapitalised companies while maintaining its previous stake in those companies. The New Amendment extends further the Temporary Framework until 31 December 2021. Continue Reading