Abstract:

As shown by the international economic and financial crisis from 2008, state aid policy may prove a flexible tool for providing financial help in the affected economic sectors from the Member States, hence reducing the negative spill over effects in the EU. This article outlines the European Commission’s response to the crisis, in implementing State aid policy, after the outburst of COVID-19 crisis. Taking into consideration the need for a coordinated response in the EU, a New Temporary Framework for state aid was adopted, allowing Member States to support directly or through the banking system most affected economic sectors has been adopted by the European Commission. Our research aims to analyse the state aid schemes implemented by the Member States, on the legal base brought by the New Temporary Framework, also highlighting some similarities with the special regulatory framework adopted during the international economic crisis from 2008. The methodological approach is based on a series of case studies regarding measures and schemes adopted in the Member States immediately after the outburst of the COVID-19 crisis. In the final part of our paper we will present a comparative approach of state intervention in order to support SMEs during the current COVID-19 crisis, followed by some recommendation concerning the state aid adoption for preventing a serious disturbance of free competition in EU.