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State aid: Commission extends Temporary Framework to enable Member States to accelerate research

., testing and production of coronavirus relevant products, to protect jobs and to further support the economy in the coronavirus outbreak

The European Commission has adopted an amendment extending the Temporary Framework adopted on 19 March 2020 to enable Member States to accelerate the research, testing and production of coronavirus relevant products, to protect jobs and to further support the economy in the context of the coronavirus outbreak.

The amended Temporary Framework complements the many other possibilities already available to Member States to mitigate the socio-economic impact of the coronavirus outbreak, in line with EU State aid rules.

The amendment extends the Temporary Framework by providing for additional five types of aid measures: (i) Support for coronavirus related research and development (R&D); (ii) Support for the construction and upscaling of testing facilities; (iii) Support for the production of products relevant to tackle the coronavirus outbreak; (iv)Targeted support in the form of deferral of tax payments and/or suspensions of social security contributions; (v) Targeted support in the form of wage subsidies for employees.

The amendment to the Temporary Framework also expands on the existing types of support that Member States can give to companies in need. The amended Temporary Framework will be in place until the end of December 2020. With a view to ensuring legal certainty, the Commission will assess before that date if it needs to be extended.

Finally, the Commission is continuously assessing if further measures are necessary to complement the toolbox for Member States to support their economy in these difficult times and help companies bounce back strongly after the crisis, including by further amending the Temporary Framework.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Today’s amendment to the Temporary Framework will further enable Member States to support companies that develop and manufacture much needed products to fight the coronavirus, such as vaccines, medicines, medical devices, disinfectants and protective equipment.

We need to act in a coordinated manner. So additional support may be granted to cross-border projects between Member States and to timely delivery of products. In addition, we have extended the temporary framework to give Member States further possibilities to ease liquidity constraints faced by companies and save jobs in sectors and regions that are hit particularly hard by this crisis.”

Arianna Podesta –