Commission approves French schemes to support economy in #Coronavirus outbreak

The European Commission has approved three French state aid schemes to support the French economy in the context of the coronavirus outbreak. The schemes were approved under the state aid Temporary Framework to support the economy in the context of the coronavirus outbreak adopted by the Commission on 19 March 2020.

The Commission approved the French schemes within 48 hours from the entry into force of the Temporary Framework. France notified to the Commission three separate support schemes under the Temporary Framework. More specifically: (i) two schemes enabling the French public investment bank Bpifrance to provide state guarantees on commercial loans and credit lines, respectively, for enterprises with up to 5,000 employees; (ii) a scheme to provide state guarantees to banks on portfolios of new loans for all types of companies.

The French plan is expected to mobilize more than €300 billion of liquidity support for companies affected by the economic impact of the coronavirus outbreak. The Commission concluded that the measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.

On this basis, the Commission approved the measures under EU state aid rules. Executive Vice President Margrethe Vestager, in charge of competition policy, said: "Our decision approves three measures taken by the French government to help its economy manage the impact of the coronavirus outbreak. These are expected to mobilize €300bn of liquidity support for companies affected by this unprecedented situation. Today, we have approved these schemes under the new State aid Temporary Framework - less than 48 hours from its adoption. We are working around the clock with member states to enable them to take swift, effective and targeted action to support the European economy at this difficult time, while preserving the Single Market. Because we need the Single Market to weather this crisis and bounce back strongly afterwards."

The full press release is available online. 

Share this article: