In Brussels
The European Commission has again loosened the noose around state aid. In a decision published on Friday, it authorizes until June 2021 the recapitalizations by the States of companies in difficulty because of the coronavirus crisis, like that of Air France to which it recently gave the green light.
However, the Commission places a number of conditions on such transactions. States will need to ensure the "necessity" , "appropriateness" and "size of the intervention" . "Recapitalization aid should only be granted if no other suitable solution is available" , warns Brussels. In addition, the payment of dividends and share buyback operations will be prohibited "until the State's complete exit from the capital" . In addition, as long as at least 75% of the amount of the recapitalization is not reimbursed, members of the management of the companies concerned will not be able to claim bonuses and will see their remuneration"Strictly" limited. Finally, these beneficiary companies will have to notify a restructuring plan to the Commission if the exit of the state capital is uncertain after a certain time: six years after the granting of funds for listed companies, seven years for the other.
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While the new Commission has made ecological and digital transitions the two main priorities of its mandate, there is no constraint imposed on the beneficiaries of recapitalizations, except to "account" for the way taxpayers' money is spent. is used in these two areas. "Member States are free to design national measures in line with additional political objectives such as further enabling green and digital transformation of their economies," says the Commission. State aid granted in the context of the coronavirus crisis already represents 1.93 billion euros. Germany takes the lion's share with 52% of this amount, far ahead of France (17%), Italy (16%), the United Kingdom (4%) and Belgium (3%).