The European Commission is consulting Member States on a draft proposal that would prolong the State Aid Temporary Framework adopted on 19 March to allow for relief measures in response to the COVID-19 crisis until 30 June 2021. The draft would also extend the scope of the framework by enabling Member States to contribute to the fixed costs of companies where they are not covered by their current revenues. In the seven months since the framework was put in place, the Commission has approved over €3 trillion in Member State support for businesses hit hardest by the crisis.
Under the current framework, the Commission has most recently approved:
- a €1,5 million Estonian scheme to support companies in the food processing sector affected by coronavirus outbreak;
- a €1,5 billion Italian scheme to support companies affected by coronavirus outbreak in Southern Italy;
- a €61 million Lithuanian scheme to support research, development and production of coronavirus-relevant products.
The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has provided a mezzanine tranche guarantee of around €125 million to Commerzbank AG. The securitisation will enable Commerzbank to lend up to €500 million to small and mid-sized businesses in Germany in response to COVID-19.