The European Commission on Monday approved 3 billion euros ($3.5 billion) in state aid for France so the country can establish a relief fund for companies and businesses affected by COVID-19
MOSCOW (Pakistan Point News / Sputnik - 14th September, 2021) The European Commission on Monday approved 3 billion Euros ($3.5 billion) in state aid for France so the country can establish a relief fund for companies and businesses affected by COVID-19.
"This 3 billion recapitalization scheme will enable France to support companies affected by the coronavirus outbreak by facilitating their access to finance in these difficult times. We continue working in close cooperation with Member States to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules," Margrethe Vestager, the executive vice-president in charge of competition policy, said as quoted in the press release by the EU Commission.
The support from the relief fund will be allocated under the Temporary Framework to companies in need through debt capital support, hybrid and equity instruments and it is estimated that between 50 to 100 legal entities will benefit. The scheme is for companies that are based in France, operational in all sectors (except the financial one), and have been viable prior to the pandemic and have demonstrated a long term sustainable business model, according to the release.
The commission adopted the Temporary Framework in March 2020 in order to give flexibility to its member states to better support their economies under the State aid rules. The Temporary Framework allows EU members to ensure that enough liquidity is available to all types of businesses and to maintain continuity of economic activity within and after the pandemic.
