Stock Groups

EU wants to extend looser state aid rules for virus-hit companies to mid-2022 By Reuters

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO – Flags of the European Union fly in front of Brussels’ EU Commission Headquarters, Belgium on May 5, 2021. REUTERS/Yves Herman4

BRUSSELS (Reuters) – The European Commission on Thursday proposed extending looser state aid rules for virus-hit small- and medium-sized companies for a limited period beyond June 2022.

As the EU’s executive responsible for ensuring equal playing fields in 27 countries, the proposal to extend the rules would allow EU countries to address the gap in investment caused by the COVID-19 epidemic.

According to the Commission, small and mid-sized companies (SMEs) as well as small mid-caps rely on loan financing from banks and could be further indebted following the crisis.

Also, the Commission proposed that existing state aid measures be extended to June 2020. This was in accordance with looser rules. Once the EU countries have provided feedback on the proposals, a final decision will then be made.

Because of the pandemic in March 2013, it was illegal for EU government to provide unfair advantage to certain companies.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. Instead, they are determined by marketmakers. As such, the prices might not reflect market conditions and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]