No Arms Race For National Champions – State Aid During Covid-19 Measures

Quinn Emanuel
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The adverse economic impact of the Covid-19 pandemic has led to many European Union Member States to introduce support measures for businesses. If a Member State grants support that confers a selective advantage on some businesses or sectors (i.e., it is not of general application), and is liable to distort competition in the internal market, the measure may entail State aid within the meaning of Article 107(1) of the Treaty of the Functioning of the European Union. To address these issues and set out a common approach to state aid during the Covid-19 pandemic, on 19 March 2020, the European Commission (the Commission) published the Temporary Framework for State Aid Measures to Support the Economy in the Current Covid-19 Outbreak (Covid-19 Communication), which was subsequently amended on 3 April 2020.

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