EU Decides Not to Extend COVID-19 Corporate Subsidy Relief Regulations

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The European Union (EU) has decided not to extend the relaxed state aid rules for companies that were applied after the spread of COVID-19.

According to major foreign media on the 12th (local time), Margrethe Vestager, the EU Commissioner for Competition, stated in a press release that "due to the economic improvement from the easing of restrictions, the temporary COVID-19 state aid framework will not be extended beyond June 30."

Earlier, in March 2020, during the COVID-19 outbreak, the EU Commission adopted a temporary framework that allowed member states flexibility in state aid rules to provide additional economic support. This regulation permitted EU member state governments to grant over 3 trillion euros (approximately 4,039 trillion KRW) in aid to numerous companies affected by the COVID-19 pandemic.

According to the EU Commission, a total of 730 billion euros in aid has been used so far. Although the relaxed state aid rules will be discontinued, investment support measures will continue until the end of this year, and liquidity support measures will continue until 2023.

The EU Commission also announced that it will review by the end of this year whether to extend the relaxed state aid rules beyond December 31 to support companies affected by sanctions on Russia.

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