The Temporary Framework provides guidance on the types and levels of public funding that EU Member States and the UK may provide to businesses during the COVID-19 pandemic, without falling foul of EU state aid rules. Originally introduced on 19 March, the Framework was amended on 3 April to include state aid for COVID-related research and development, and again on 8 May to cover recapitalisations of companies.
We have written to the Government seeking an overall assessment of the Framework from a UK perspective. In particular, we have asked about a requirement, known as ‘undertaking in difficulty’ test, that may be preventing viable UK businesses from accessing some of the aid measures put in place by the Government against the pandemic.