LATEST KEY DEVELOPMENTS
Competition & State Aid
- European Commission prolongs and further expands Temporary Framework to support economy in context of coronavirus outbreak
- EU approves new and amended Member State measures to support the economy
Trade / Export Controls
- European Commission affirms compatibility of COVID-19 export authorization mechanism with international obligations
- European Commission publishes latest list of Member State mechanisms screening foreign direct investments, reflecting various COVID-19 related measures
- Expansion of EU-Japan Economic Partnership Agreement welcomed as instrument to rebuild growth following the COVID-19 pandemic
Medicines, Medical Devices, and Personal Protective Equipment
- EMA starts rolling review of Regeneron/Roche COVID-19 vaccine
- European Commission adopts Implementing Regulation on the authorisation mechanism for exports of COVID-19 vaccines
- EU approves AstraZeneca's COVID-19 vaccines
Cybersecurity, Privacy & Data Protection
- Guidelines on proof of vaccination for medical purposes - basic interoperability elements
|COMPETITION & STATE AID|
European Commission prolongs and further expands Temporary Framework to support economy in context of coronavirus outbreak (see here)
In light of the continued economic uncertainty due to the prolonged pandemic, the European Commission decided to extend all measures set out in the State aid Temporary Framework (adopted 19 March 2020) until 31 December 2021.
The Commission has also substantially increased the aid ceilings set out in the Temporary Framework to:
Furthermore, recapitalization measures, originally set to expire on 20 September 2021, are also prolonged until 31 December 2021. To recall, these recapitalization measures respond to the constricted ability of European companies to supply goods and services due to the pandemic, provoking losses that have diminished their equity and their ability to borrow on the markets. The Temporary Framework's expansion in May 2020 thereby included facilitating public interventions in the form of recapitalization aid to non-financial companies, along with safeguards to preserve competition (see Jones Day COVID-19 Update No. 7 of 8 May 2020).
Until 31 December 2022, the Commission will also enable Member States to convert certain repayable instruments (e.g. guarantees, loans, repayable advances) into other forms of aid, such as direct grants, provided the conversion does not exceed the new ceilings. This measure should incentivize Member States to construct their aid as repayable instruments from the outset.
Member States seeking to modify existing aid measures, towards extending their duration until 31 December 2021, expanding their budget, or aligning such measures with the now-amended Temporary Framework (including higher aid ceilings per company), may notify such modifications in a block notification. This is intended to minimize Member States' administrative burdens.
Since the onset of the coronavirus outbreak, the European Commission has adopted a significant number of State aid measures under Article 107(2)b, Article 107(3)b and under the Temporary Framework.
The most recent measures adopted to support the economy and companies affected by coronavirus outbreak include:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.