State aid to mitigate the economic downturn triggered by the COVID-19 pandemic (cepInput)
A Temporary Framework published by the European Commission sets up the conditions that COVID-19-related state aid measures have to fulfil in order not to violate EU law. This cepInput assesses the impact on competition in the Single Market that the design of the state aid measures contained in the Temporary Framework will have.
The Temporary Framework increases legal certainty for all parties and accelerates the procedures for the approval of state aid. The strict conditions set up by the Temporary Framework ensure that the benefits of state aid outweigh the distortions of competition caused by such measures. However, the Temporary Framework can nevertheless affect the level playing field, as each Member State independently grant state aid according to both national preferences and the diverging fiscal space.