The EC prolonged the temporary framework for the provision of state aid through 2011
14.12.2010Company: Amcham
In December, the EC prolonged the temporary framework for the provision of state aid through 2011...
Even in the following year, Member States will be authorised to provide financial support to companies based on simplified rules. The lenient system has been applied in relation to the economic crisis, and originally it was to be terminated in December 2010. In 2008/2009, the EC issued a series of Communications by which it eased the rules for the provision of state aid. The validity of the lenient rules for provision of state aid was originally limited until the end of 2010. Now, the EC has decided to prolong this temporary framework through 2011, but with modifications in certain aspects which represent another step in the gradual return to the standard rules for the provision of state aid. For instance, big companies will no longer be able to use the framework, and banks using the advantages of the temporary framework will have to present a restructuring plan in order to be granted state aid. However, SMEs can make use of the lenient rules for the provision of state aid even in the following year.
