The Commission suggests a prolongation of the temporary framework for State aid measures until the end of 2011 in order to facilitate companies’ access to financing. It also proposes adaptations to the current temporary framework. So, the Commission launched a public consultation on the amendments to this framework.
In January 2009, the European Commission adopted a temporary community framework for State aid measures to support access to finance in the current financial and economic crises. Indeed, the Commission had noticed the impact of the financial crisis on the real economy as the banking sector limited the access of companies to credit.
The framework focused mainly on existing State aid measures which may not be granted to undertakings in difficulty but also introduced new measures such as the increase of the de minimis aid threshold up to 500.000 EUR, public guarantees scheme, aid in the form of subsidized interest rates and aid for the production of green products. Those aids were available to undertakings in difficulty if their financial situation had deteriorated after 1 July 2010.
Although those new aids had to be notified and formally authorized by the European Commission before their implementation, some of them were very successful especially the de minimis aid up to 500.000 EUR and the aid in the form of guarantees.
The temporary framework has a limited duration and is supposed to expire at the end of 2010.
Considering the current economic situation, the Commission noticed that credit conditions remained tight especially for small businesses although access to financing was easing again. Therefore, the Commission suggests a prolongation of the temporary framework until the end of 2011 in order to facilitate companies’ access to financing, which is justified by market conditions. Moreover, it proposed adaptations to the current temporary framework.
The Commission has launched a public consultation on the amendments to the temporary community framework and all parties are invited to send their observations before 26 October 2010.
I remain at your disposal for further information on the subject.
