On March 19, 2020, the European Commission (EC) said it has relaxed its State Aid rules to allow European national governments to respond quickly to the coronavirus crisis.
In general, the EC’s State Aid rules seek to prevent EC member governments from using state aid to give their countries’ businesses a competitive and unfair advantage. The “Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak” recognizes that its member governments need to work together to mitigate the impact of COVID-19 on the European economy. The framework will be in place through the end of December 2020, although the EC can extend it if necessary.
The EC adopted a similar temporary resolution during the Global Financial Crisis in 2008.
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