The state aid instruments in response to the COVID-19 crisis

Abstract

The COVID 19 outbreak has hit the global (including the EU) economy unexpectedly and with great force. Many so far healthy undertakings have had to face the looming lack of liquidity. In order to counter the damage inflicted on undertakings and to perverse the continuity of economic activity during and after the coronavirus pandemic, public authorities were forced to step in and launch various types of support measures for entrepreneurs. This has raised particular issues from the State aid regime perspective. The article seeks to answer the question what is the EU response to the coronavirus pandemic in terms of the revised state aid policy. To this end, it is discussed what types of public instruments for entrepreneurs constitute state aid and thus fall within the EU control; what concrete support measures for business are utilized by member states in these troubled times and what are the guiding principles in deciding on their approval by the European Commission. Considerations are based on literature review, the analysis of relevant legal provisions and guidelines as well as selected state aid cases related to coronavirus.