COMMUNICATION FROM THE COMMISSION

Amendment to the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak

(2022/C 423/04)

1. THE COVID-19 OUTBREAK AND ITS IMPACT ON THE ECONOMY

1. On 19 March 2020, the Commission adopted the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak ( 1 ) (‘COVID Temporary Framework’), which was amended several times ( 2 ) to cater for the evolving needs during the crisis.

2. In November 2021, the Commission introduced in the COVID Temporary Framework a new section 3.13 to enable Member States to provide investment support with the aim to facilitate the development of economic activities required for the return to a sustainable long-term growth, overcoming the negative economic effects of the pandemic.

3. In May 2022, the Commission announced that it will phase out the COVID Temporary Framework. The COVID Temporary Framework was not extended beyond 30 June 2022 for most of the tools provided. To avoid a cliff-edge effect and to allow sufficient time for the roll-out and implementation especially of the recovery tools set out in sections 3.13 and 3.14, those sections of the COVID Temporary Framework have a later expiry date. Section 3.13 offers the possibility for Member States to provide specific investment support until 31 December 2022 and section 3.14 allows for solvency support measures 31 December 2023.

4. The Commission takes note of labour shortages and continued disruptions in supply chains following the COVID-19 pandemic. The Commission also notes that the economic recovery from the COVID crisis is delayed even further, in view of the consequences on the economies of Member States caused by the unprovoked attack by Russia on Ukraine ( 3 ) . In view of these facts, the Commission considers that it is justified to provide more time for the measure allowing for investment support towards a sustainable recovery to achieve its objectives.

2. EXTENSION OF THE INVESTMENT SUPPORT TOWARDS A SUSTAINABLE RECOVERY

5. Point 91 is amended as follows: ‘Aid under this section may be added to notifiable regional investment aid and cumulated with other types of aid under the conditions specified in point 20 of this Temporary Framework. Aid granted under the Temporary Crisis Framework (*1) may not be cumulated with aid under this section for the same eligible costs. Under no circumstances may the total aid amount exceed 100 % of eligible costs. As a result, cumulation with other aid instruments that allow the coverage of a funding gap is excluded. (*1) OJ C 131I, 24.3.2022, p. 1.’"

6. Point 93 is amended as follows: ‘93. Aid under this section may be granted until 31 December 2023. Aid for investments that predate 1 February 2020 is excluded.’

(1) OJ C 91I, 20.3.2020, p. 1.

(2) OJ C 112I, 4.4.2020, p. 1; OJ C 164, 13.5.2020, p. 3; OJ C 218, 2.7.2020, p. 3; OJ C 340I, 13.10.2020, p. 1; OJ C 34, 1.2.2021, p. 6; OJ C 473, 24.11.2021, p. 1.

(3) Communication from the Commission Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia (OJ C 131I, 24.3.2022, p. 1).