Brussels, 3 April 2020

On the 3rd of April, the European Commission 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 Commission adopted the new State aid  Temporary Framework  to support the economy in the context of the coronavirus outbreak, based on Article 107(3)(b) of the Treaty on the Functioning of the European Union. The Temporary Framework recognises that the entire EU economy is experiencing a serious disturbance. It enables Member States to use the full flexibility foreseen under State aid rules to support the economy, while limiting negative consequences to the level playing field in the Single Market.

The amendment extends the Temporary Framework by providing for five additional types of aid measures:

  • Support for coronavirus related research and development.
  • Support for the construction and upscaling of testing facilities.
  • Support for the production of products relevant to tackle the coronavirus outbreak.
  • Targeted support in the form of deferral of tax payments and/or suspensions of social security contributions.
  • Targeted support in the form of wage subsidies for employees.