EU proposes to extend state aid to 31 December

(ANSA) - BRUSSELS, JAN 19 - The EU Commission has proposed to the states to extend the temporary scheme of state aid set up last March to support the economies during the pandemic until 31 December 2021.

"With the second wave continuing to have a major impact on our lives, European companies need further support," said competition commissioner Margrethe Vestager, stating that aid caps will also be raised in certain cases.

The Commission proposes, "given the prolonged duration of the crisis", to increase the ceilings for the limited amounts of aid granted under the temporary framework (currently up to € 120,000 for fisheries and aquaculture companies, € 100,000 agricultural companies, and € 800,000 europer all other sectors) and for measures that contribute to the fixed costs of companies that are not covered by their revenues (currently up to € 3 million per company).

   Furthermore, Brussels proposes to allow Member States to convert granted repayable instruments (including loans) into direct grants, even at a later stage: the aim is to encourage states to choose repayable instruments as a form of aid in the first place.

Member States now have the opportunity to comment on the Commission proposal before it is approved.

(HANDLE).