EC adopts Temporary Crisis Framework to support economy of Members

The Temporary Crisis Framework complements the existing State aid toolbox with many other possibilities already available to Member States, such as measures providing compensation to companies for damages directly suffered due to exceptional circumstances, and measures outlined in the Commission Communications on energy market developments.

“The new framework will enable Member States to (i) grant limited amounts of aid to companies affected by the current crisis or by the related sanctions and countersanctions; (ii) ensure that sufficient liquidity remains available to businesses; and (iii) compensate companies for the additional costs incurred due to exceptionally high gas and electricity prices,” European Commission’s executive vice-president Margrethe Vestager, in charge of competition policy, said in a statement. 

These types of measures will be available also to companies that qualify as being in difficulty, as they may face acute liquidity needs due to the current circumstances, arriving on the heels of the coronavirus pandemic. However, sanctioned Russian-controlled entities will be excluded from the scope of these measures.

Fibre2Fashion News Desk (RKS)