COVID-19: European Commission issues Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak

By means of this Communication by the European Commission (the "Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak") the pillars of the Provisional Aid Framework due to the COVID-19 corona virus pandemic are clarified and the highest limits at EU level for the amount of aid, which binds the Governments of the Member States when legislating national aid measures, are also identified.

The main pillars of the Temporary Framework are four:

1. direct grants, repayable advances and tax advantages

2. guarantees on loans

3. subsidized loan interest rates

4. Aid in the form of guarantees and loans to be channeled through credit institutions

As a result of the above, the Greek Government and the relevant Ministries of Finance and Development issued a decision published in the Official Gazette on 3.05.2020, which establishes an aid scheme in the form of a repayable advance payment for private companies, regardless of the sector, due to the economy and the spread of COVID-19 coronary disease (COVID-19) and set the maximum limits per business as well as for each "single business", the definition of "single business" which concerns companies in particular within a group of companies and other conditions for receiving this aid.

It is also clarified that any individual aid under this decision is granted either

a) in accordance with the terms of no. C (2020) 1863 / 19.03.2020 of the European Commission (EU) Declaration "Temporary Framework for State Aid Measures to Support the Economy during the Current Outbreak of COVID-19", as amended by its announcement EU no. C (2020) 2215 / 3.4.2020 (Temporary Framework),

b) in accordance with the terms of Regulation (EU) No 182/2011; 1407/2013 on minor aid (Regulation de minimis).

The aid in the form of a repayable advance is unable to be ceased and confiscated against debt claims, it is tax-free and is not offset by any debt.

Finally, the announcement of the Commission confirms the possibility of cumulative receipt of the aid of the Temporary Framework and any previous subsidies, especially the NSRF entrepreneurship stimulus under the de minimis Regulation applicable framework.

Apostolos Mountoulias

* Apostolos Mountoulias has dealt diligently with issues of state grants and revocation of State Aid criteria and has studied in detail the specifics of each aid.