EU Commission Approves Germany's Economic Support Package for Coronavirus-Related R&D

MOSCOW (Pakistan Point News / Sputnik - 29th April, 2020) The European Commission said on Wednesday it had approved an "umbrella" scheme of financial support requested by the German government to be streamed into coronavirus-related research and development, as well as production of relevant medical products.

"The European Commission has approved a German 'umbrella' scheme to support research, development, testing and production of coronavirus relevant products. The scheme was approved under the State aid Temporary Framework," the commission said in a press release.

The scheme, dubbed "Bundesregelung Forschungs-, Entwicklungs- und Investitionsbeihilfen," is going to cover direct grants, repayable advances, tax advantages and guarantees to cover losses, as stated in the press release. Companies in Germany can now apply and be granted assistance by German authorities at all administrative levels, but their investment projects will have to be completed within six months after the date of receiving the aid.

"This German 'umbrella' scheme will support investments in research and development activities needed for the production of crucial products to fight the coronavirus outbreak, such as medicines, vaccines, ventilators and protective clothing. We continue to work closely with all Member States to find solutions to fight the outbreak, in line with EU rules," Commission Executive Vice-President Margrethe Vestager said, as quoted in the press release.

The Commission regulates the types of aid that member states are allowed to grant through its Temporary Framework, adopted on March 19 and amended on April 3. Its article 107(3)(b) stipulates that aid be granted if the Commission finds it to be necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state.