The European Commission said it was aware of the need to adapt competition rules to the new international scene and the new environmental and digital objectives of the Union. Among other things, it is ready to authorize (targeted) public aid in the field of microprocessor production. Meanwhile, Brussels has introduced new tools to facilitate investment and recapitalization in an ever-uncertain environment.
«A rigorous application of competition rules is essential for businesses and consumers to benefit from the single market – said the Commissioner for Competition Margrethe Vestager – At the same time, the same rules have an intrinsic flexibility to adapt. We have adopted the sixth amendment to the temporary state aid framework and we are working on a review of competition policy with unprecedented scope and ambition. ‘
Six-month extension for extraordinary state aid rules
In this sense, the European Commission announced on 18 November that it intends to extend by six months – from 31 December 2021 to 30 June 2022 – the extraordinary rules on state aid adopted last year in full emergency in order to cope with the very serious shock. economic caused by the viral pandemic. The hypothesis of a limited extension had been illustrated to the member countries at the beginning of October and has now been confirmed by Brussels.
In addition, Member States will be able to create incentives to facilitate investment in fields particularly affected by the recent economic downturn. The instrument will remain in existence until 31 December 2022 and will be tied to specific amounts, avoiding market distortions. Member States will also be able to incentivize private capital investment in small and medium-sized enterprises in order to avoid bankruptcies. This leverage can be used until December 31, 2023.
«The limited extension offers the opportunity for a gradual and coordinated elimination of the crisis measures – specified Ms. Vestager -. On the other hand, we will continue to closely monitor the increase in Covid-19 infections and other risks for the economic recovery ». As for the two new tools just described, they must serve “to facilitate private investment in view of a faster, greener and more digital recovery”.