State support for Europe's Covid-hit businesses 'unprecedented'
Margrethe Vestager - Photo © European Union 2022
(BRUSSELS) - COVID-19 state aid measures allowed for unprecedented levels of public support while preserving the level-playing field of a fair Single Market, a report by the European Commission showed Thursday.
The Commission's 2021 State Aid Scoreboard, relating to State aid expenditure in 2020, showed the crucial role played by state aid policy in preserving a fair Single Market while at the same time allowing Member States to support companies in times of acute and unforeseen crisis, says the EU executive.
The temporary measures adopted were "proportionate and necessary", said EC vice-president Margrethe Vestager, in charge of competition policy, "matching the economic damage suffered during the crisis. In addition, very importantly, it shows that State aid expenditure for non-crisis objectives has remained within the pre-pandemic existing ranges. It confirms the crucial role of State aid policy as the cornerstone of a fair Single Market."
In 2020, Member States granted €384.33 billion under State aid measures for all objectives, of which €227.97 billion helped businesses seriously affected by the coronavirus pandemic to remain viable.
The 2021 State Aid Scoreboard comprises aid expenditure made by the 27 EU Member States and the UK in 2020. In particular it shows that, in 2020, Member States and the UK spent €384.33 billion, about 2.43% of their combined 2020 GDP, on State aid for all objectives, excluding aid to railways and Services of General Economic Interest ('SGEI').
While the total expenditure for COVID-19 measures reached €227.97 billion (about 59% of the total State aid spending), public support for other measures not related to the coronavirus pandemic hit €156.36 billion (about 41% of the total spending).