Temporary Framework for State aid measures was put in place to enable EU Member States the maximum flexiblity foreseen within State Aid rules to support domestic industries struggling in the context of the COVID-19 outbreak. It allows Member States to provide support to domestic companies more quickly and in a manner that allows them to comply with EU State Aid rules, recognising the need for public support to preserve economic activity. Adopted in March 2020, the Framework has been amended five times with additions or adjustements to allowed public support measures, and has been extended to December 2021.
Aid can be provided to several sectors, including the energy sector, in the form of:
- direct grants,
- repayable advances or tax advantages
- guarantees on loans
- subsidised interest rates for loans
- guarantees and loans channelled through credit institutions or other financial institutions
- short-term export credit insurance
Five subsequent amendments to the Framework were undertaken since March 2020, as of January 2021. The temporary framework's application has also been extended until the 31st December 2021.