The European Commission has today extended and widened its Temporary Framework for State Aid during the coronavirus pandemic. In particular, the aid ceilings for small amounts of compatible aid and assistance for fixed costs have been substantially increased. The Federal Government had already been urging the European Commission to take this decision for quite some time.
said: "The widened framework for State aid presented by the European Commission is very good news for businesses and employees. It is another important step that provides for additional flexibility for financial assistance to industry. Many businesses continue to be in severe financial distress due to the ongoing pandemic. Our businesses therefore need our continued support. This is why we continue to offer our proven coronavirus assistance to do everything we can to preserve the substance of our economy."
Specifically, the new framework includes the following improvements:
- Increased ceilings for small amounts of compatible aid of €1.8 million (previously €800,000), €270,000 in the fisheries/aquaculture sector (previously €120,000) and €225,000 in the agricultural sector (previously €100,000).
- Increased ceilings for assistance for fixed costs of €10 million (previously €3 million)
- Uniform extension of the Temporary Framework until 31 December 2021 (previously limited until 30 June 2021, for larger recapitalisations until 30 September 2021)
The European Commission's Temporary Framework provides the legal basis for numerous German assistance measures during the pandemic, for example for the Bridging Assistance, various KfW loans and parts of the exceptional business assistance (November/December Assistance). The changes adopted today significantly expand the scope under State aid law for supporting businesses effectively during the pandemic.