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Parliamentary questions
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10 July 2020
Answer given by Executive Vice-President Vestager
on behalf of the European Commission
Question reference: P-003239/2020

In the context of the economic response to the coronavirus outbreak, the Commission adopted a state aid Temporary Framework, which sets horizontal rules applicable to all Member States. The Temporary Framework provides safeguards, such as limits to the support that Member States can grant to each company.

This aims at avoiding that Member States overcompensate their own companies, therefore preventing undue distortions to the level playing field in the Single Market. All state aid approved to-date has been necessary and proportionate to support European businesses and remedy the serious disturbance to the European economy due to the coronavirus outbreak.

The Commission also recalls that the strong inter-connectedness of the European economy and cross-border value chains means that support in one Member State can have positive spill-over effects in other parts of the EU economy.

The differences in the amount of state aid granted by Member States appears linked to the fiscal space they have as well as the respective size of their economies. In this context, the Commission points to its proposal for a major recovery plan for Europe helping to repair the economic and social damage brought by the coronavirus pandemic, kick-starting European recovery as well as protecting and creating jobs.

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