State aid in the times of COVID-19 pandemic

Abstract

COVID-19 caused serious turbulence in the economy worldwide, severely damaging certain industries, while generating extra revenues for others. In order to be able to continue business as usual following the current crises there is a need to provide state aid to sectors and companies which could not have been imaginable previously. The EU has reacted extremely speedily. Under the Temporary Framework issued by the European Commission at the beginning of the pandemic a significant number of state aids has been approved. Although the Temporary Framework was adapted very quickly, the transitional rules ensure that state aids do not interfere with the functioning of the internal market except to the extent a necessary and proportionate. The present article highlights the various legal bases which can be invoked in the present COVID-19 pandemic situation for providing state aid, includes a comprehensive summary of every single state aid notified to the European Commission with respect to the effects of COVID-19 pandemic and presents numerous examples from the practice.