Online Seminar on ‘State Aid in the context of COVID-19’
On 3 April, the Florence School of Banking and Finance organised an online seminar to present the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak, adopted by the European Commission on the 19 of March.
The Temporary Framework was presented by Ramona Ianus (DG Competition, European Commission), who illustrated the main characteristics of the Temporary Framework, which enable Member States to ensure that sufficient liquidity remains available to businesses of all types and to preserve the continuity of economic activity during and after the virus outbreak.
Following the adoption of the Temporary Framework, direct grants, selective tax advantages, public guarantees or public loans can be granted to companies that face difficulties because of the economic implications of the virus. In addition, banks and other financial institutions have a key role to play in dealing with the effects of the COVID-19 outbreak, by maintaining the flow of credit to the economy. Therefore, the Commission inserted the necessary safeguards in the Temporary Framework to ensure that the support is reaching the undertakings and does not stay with the banks.
During the seminar, Ms Ianus referred to the adoption of an amendment to the Temporary Framework, which was issued a few hours after the event and which can be found on the website of the European Commission’s DG Competition.