Here comes the extension regarding the state aid expected to face the crisis triggered by the pandemic from Covid 19. The European Commission communicated the extension directly through a note issued last November 18, which specifies how the return to normality can only be gradual. This is to prevent massive fallout on the economic situation of families and companies.
The expiry of the temporary framework is thus postponed by 6 months and taken from the current deadline (scheduled for next 31 December 2021) to June 30, 2022. In the meantime – to further facilitate the recovery – two new tools are introduced: the first concerns a system of direct incentives for private investments, while the second will be used to mobilize personal funds and encourage investments in small and medium-sized enterprises.
The choice of the European Commission and the words of Vestager
The choice was illustrated to the media directly by the Danish Margrethe Vestager, current executive vice president of Ursula von der Leyen and head of competition policy. These are his words:
“The limited extension offers the possibility of a ‘phasing out, progressive and coordinated measures related to the crisis, thus avoiding sudden and abrupt deteriorations. The choice reflects the vigorous recovery forecast of the European economy as a whole. On the other hand, in parallel we will continue to closely monitor the increase in infections caused by the virus and other risks for the economic recovery ”.
Vestager went on to say that “since the start of the pandemic, the temporary framework for state aid has allowed Member States to provide a targeted and proportionate support to companies that needed it. At the same time it was possible to introduce safeguard measures to preserve a level playing field in the single market. Today we have extended its application for six months, until the end of June next year “.
Italy looks interested in EU moves
The news comes a week after another delicate step that concerns our country, namely the green light for Italy to disburse 4.5 billion euros of state aid. There are two items specified by the European Union.
The first concerns the non-repayable contributions for the start up, whose application expires on 9 December 2021: companies registered between 1 January and 31 December 2018, with business activities started in 2019, will thus be recognized amounts up to 1.000 euro.
The following item deals with non-repayable equalization contributions, with amounts up to 150 thousand euros for companies that, following the pandemic, suffered a worsening of their economic results compared to 2019.
Finally, together with the extension of state aid until 30 June 2022, the European Commission it also introduced two new support tools, allowing Member States to choose between two possible types of incentives.
It will be possible to introduce (under certain conditions) new incentives for investments made by companies to accelerate the ecological transition (in Italy the responsible is the minister Roberto Cingolani) is that digital (the holder of the department is Vittorio Colao) until 31 December 2022.
But it will also be possible to grant aid and bonuses for those who decide to make their savings available for investments in the most limited companies (including the same start-ups and SMEs) with capitalization until 31 December 2023.
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