Last 28 January, in order to keep on supporting the EU economy and firms in difficulty due to the outbreak of Covid-19, the European Commission resolved to extend the Temporary Framework on State Aid already adopted on 19 March 2020 until 31 December 2021.
Our Law Firm had already dealt with this matter on a post summarising the main features of the exceptional State Aid regime set out by the EU Commission in March 2020. You can easily access our post, by clicking on this link.
Whereas by the previous prolongation until 30 June 2021, the EU Commission only postponed its expiry, with the brand new extension, it sets forth many extra provisions which are favourable to undertakings. It namely increased the ceilings allowed for aid granted to undertakings, preventing their risk to distort competition.
Such ceilings currently amount to EUR 225.000 for undertakings operating in the primary production of agricultural products(previously, EUR 100.000); EUR 270.000 for companies active in the fishery and aquaculture sector (previously, EUR 120.000); and EUR 1,800,000 for companies active in all other sectors (previously, EUR 800.000).