The outbreak of the COVID-19 infection has an undeniably significant economic impact. Almost all Member States have already announced or implemented support measures for citizens or companies. State aid spending in the context of COVID-19 is increasing exponentially on a daily basis and in all industry sectors, with more than EUR 600 billion spent by Member States since the beginning of the outbreak.
The European Commission is showing a much-desired flexibility and readiness through the adoption of a Temporary Framework to enable Member States to support the economy within the boundaries of competition law. Even so, companies must be aware of State aid risks and think twice before accepting state subsidies, tax breaks, state guarantees, R&D grants, etc. in the context of the COVID-19 outbreak. They may end up having to refund the State aid, increased with a substantial recovery interest rate.
In this Dbriefs, the Deloitte Legal international team of experts will:
* Provide a reminder on the basics of State aid (what is State aid, who are the stakeholders, what are the incentives).
* Explain the measures adopted so far by the European Commission in the context of the COVID-19 crisis, with a particular focus on the Temporary Framework and its subsequent amendments (what are the permitted types of aid, what are the limitations, how long will this regime apply).
* Provide an overview of the instruments adopted by different Member States across the EU (what types of measures are being implemented, which sectors are or will be beneficiaries of the aid, examples of aid to individual companies).
* Discuss the forecast, likely scenarios and way forward for State aid matters in the COVID-19 context.
Join Deloitte Legal specialists who will share its experience from acting on State aid matters during the financial crisis back in 2008-2009 and during the present COVID-19 crisis.