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EU to phase out covid state aid temporary framework

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The European Commission has announced that the EU state aid covid temporary framework will not be extended beyond 30 June 2022, with the exception of investment and solvency support measures.

The following support measures provided for in the temporary framework are to be phased out by the end of June:

  • direct grants and other support payments to businesses;
  • covid-19 research and development aid;
  • investment aid for testing and upscaling infrastructure;
  • investment aid to produce covid-19-related products;
  • deferrals of tax and social security contributions; and
  • support for uncovered fixed costs.

Member states can use all elements of the temporary framework until 30 June 2022. After this date, member states may still convert loans into limited amounts of aid in the form of direct grants, applying the conditions of the temporary framework and if provided for in their national schemes. Investment support towards a sustainable recovery will be possible until 31 December 2022, with solvency support remaining in place until 31 December 2023.

The Commission has also announced a new state aid framework, which includes tax relief measures to support Europe’s economy following Russia’s invasion of Ukraine.

Issue: 1576
Categories: News
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