08:44 European Commission to lift flexible state aid rules at the end of June

The member states of the European Union must again comply with normal state aid rules from July, the European Commission reported on Thursday. At the start of the corona crisis, these rules were relaxed somewhat to help as many companies as possible through the pandemic, but according to EU Commissioner Margrethe Vestager (Competition), that is no longer the case.

In normal times there are strict rules on state aid to companies to avoid unfair competition, but these were briefly enacted during the crisis. On March 19, 2020, just after the start of quarantine in most EU countries, the European Commission decided to turn a blind eye to this support.

The plan was originally scheduled to expire at the end of that year, but has been extended three times. In October 2020, it was decided that the rules will apply until June 30, 2021. Later, the rules were extended again until the end of that year and again until the middle of that year.

“During this time, we have approved 950 national plans for a total of more than 3 trillion euros,” said Vestager. “Our data shows that EUR 730 billion of this amount has actually been spent. But after more than two years, the health crisis in Europe is finally almost under control and member states have lifted restrictions.”

Therefore, the Commission does not consider it necessary to provide additional aid to companies after 30 June. An investment regime will remain in force until the end of this year and companies can count on a regime to increase their buffer by the end of 2023. “These are two important measures to stimulate the economy,” said Vestager.

Vestager emphasizes that no job is deleted overnight. Phased use is being phased in and will likely be fully completed by June 30, 2023.

In addition, member states can use a crisis package to guide companies through the Ukraine crisis. The Netherlands is not currently planning to do this.