Renew Europe Group welcomes the new temporary framework for State aid adopted by the Commission in the context of Covid-19.
Last night, the European Commission adopted a temporary framework for state aid intended to support the economy in the context of the Covid-19 epidemic. This framework, planned until the end of 2020, is based on Article 107§3.b of the Treaty aimed at remedying a serious disturbance in the EU economy.
This temporary framework, which can be combined with other existing support measures, aims to ensure that companies have sufficient liquidity and maintain their activity during and after the crisis. It provides new types of aid:
- direct subsidies,
- selective tax advantages and advanced payments;
- State guarantees for loans taken out by companies with banks;
- subsidized public loans for businesses;
- guarantees for banks that channel support to the real economy;
- and more flexible short-term export credit insurances.
Stéphanie Yon-Courtin, Vice-Chair of the Committee on Economic and Monetary Affairs at the European Parliament and rapporteur of the Annual Report on Competition Policy welcomes these measures:
“I am delighted to the responsiveness of the Commission to find solutions to the liquidity problems encountered by many companies, whatever their size and sector. State aid will have an impact on all sectors such as the banking, agricultural, maritime or air sector and will have a direct effect on the real economy. “
This framework is inspired by what it had already been done during the last financial crisis, however, the French MEP specifies: “We are not at all in the same context as the last financial crisis where we did too late and too little. In this unprecedented health crisis, there is no culprit, only victims and savings that will come out bloodless. This must us allow us to rethink our tools that stand the test of European unity. “
In accordance with the procedure, the new temporary framework was sent to Member States for consultation and adopted yesterday by the European Commission. “The rapid adoption of measures, although necessary, should not be a reason for neglecting the European Parliament. If we want to contain the crisis of mistrust vis-à-vis with the EU, we, as representatives directly elected by our fellow citizens, must be associated with these decisions to be the relieve on our territories“, she says.
The European Parliament will vote on March 26 on these first measures proposed by the Commission. All the parliamentary Committees and political groups are mobilized to propose concrete responses to this crisis.