Good news for European economies. The European Commission announced Thursday, January 28, the extension until December 31 of a device authorizing EU countries to support with public funds companies suffering from the consequences of the Covid-19 epidemic. This system on state aid, called the “State aid Temporary Framework”, was initially due to expire on June 30, but several member states had called for its extension.
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“As the coronavirus outbreak lasts longer than we all hoped, we must continue to ensure that member states can provide businesses with the support they need to get through it.”, justified in a press release Margrethe Vestager, European Commissioner responsible for competition.
In addition to the extension of the mechanism, it also announced more flexibility in these measures, in particular the possibility of eventually transforming certain loans guaranteed by the State into “direct subsidies”, as requested by Brune Le Maire, the Minister of the Economy.