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EU OKs French Schemes To Support Economy In Coronavirus Outbreak

By  |  March 22, 2020
CoronaVirus

The European Commission has approved three French State aid schemes to support the French economy in the context of the Coronavirus outbreak. The schemes were approved under the State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak adopted by the Commission on 19 March 2020. The Commission approved the French schemes within 48 hours from the entry into force of the Temporary Framework.

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    Executive Vice President Margrethe Vestager, in charge of competition policy, said: “Our decision approves three measures taken by the French government to help its economy manage the impact of the Coronavirus outbreak. These are expected to mobilise €300 billion of liquidity support for companies affected by this unprecedented situation. Today, we have approved these schemes under the new State aid Temporary Framework – less than 48 hours from its adoption. We are working around the clock with Member States to enable them to take swift, effective and targeted action to support the European economy at this difficult time, while preserving the Single Market. Because we need the Single Market to weather this crisis and bounce back strongly afterwards.”

    The French plan is expected to mobilise more than €300 billion of liquidity support for companies affected by the economic impact of the Coronavirus outbreak.

    The Commission found that the French measures are in line with the conditions set out in the Temporary Framework. In particular, they cover guarantees on loans with a limited maturity and size. They also limit the risk taken by the State to a maximum of 90%. This ensures that support is swiftly available at favourable conditions and limited to those who need it in the current situation.

    Full Content: European Commission

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