On Wednesday, 25 March, the European Commission authorised the State guarantee granted by Italy in support of a debt moratorium from banks to small and medium-sized enterprises (SMEs) affected by the coronavirus outbreak. The scheme was authorised under the Temporary Framework for State aid measures to support the economy in this context; this framework was adopted by the Commission on 19 March 2020.
For Executive Vice President Margrethe Vestager who is in charge of competition policy, “It is crucial for SMEs to have access to liquidity in this extremely difficult situation [...]. SMEs are the backbone of Italy’s and, more generally, Europe’s economy”.
Italy notified a State guarantee to support a debt moratorium for SMEs, which includes the postponement of repayments of overdraft facilities, bank advances, bullet loans, mortgages, and leasing operations. The measure aims to temporarily ease the financial burden on SMEs severely affected by the economic consequences of the coronavirus outbreak. The goal is to ensure that SMEs have liquidity to help them safeguard jobs and continue their activities despite this difficult situation.
The Commission concluded that the guarantee covering the provision of liquidity to SMEs under the moratorium “will contribute to managing the economic impact of the COVID-19 outbreak in Italy”. The measures in question are necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a Member State in accordance with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. (Original version in French by Lionel Changeur)