The European Commission announced on Thursday that it will not renew the COVID-19 state aid program after its expiry date of June 30. Instead, the scheme will be phased out according to a previously agreed plan, which includes the possibility for member states to provide specific investment and solvency support measures until the end of 2022 and the end of 2023 respectively.
The Commission has so far approved over €3 trillion in aid under the framework, with around €730 billion of those funds actually spent. "The phase-out will be progressive and coordinated, and that affected businesses will not be cut off suddenly from necessary support. The State aid COVID Temporary Framework already provides for a flexible transition, in particular for the conversion and restructuring options of debt instruments (e.g. guarantees, loans, repayable advances) into other forms of aid, such as direct grants, until 30 June 2023, under clear safeguards," Commission Executive Vice-President Margrethe Vestager said.
