On Thursday 30 September, the European Commission sent to the Member States for consultation a proposal to extend the State aid Temporary Framework until 30 June 2022, while the way forward for phasing out support in crisis situations in light of the recovery of the European economy is being set out.
The proposal adapts the scope of this framework by allowing ‘forward-looking’ measures to support investment and solvency for a limited period.
Margrethe Vestager, Executive Vice-President in charge of Competition Policy, said: “We are finally seeing the light at the end of the tunnel, with a strong recovery of the European economy. At the same time, we must be aware of the disparities between Member States and the need to avoid a cliff-edge effect when withdrawing public support. We therefore propose the gradual phasing out of support measures in crisis situations, in order to allow Member States and industry to adapt, accompanied by measures to boost and attract private investment in the recovery phase”.
The Commission will decide on the way forward, taking into account the views of Member States and the need to maintain effective competition in the single market. (Original version in French by Lionel Changeur)