State aid in times of crisis – Swift reaction but shortcomings in the Commission’s monitoring and inconsistencies in the framework to support the EU’s industrial policy objectives

Summary:

Following the economic disturbance caused by the COVID‑19 pandemic and Russia’s invasion of Ukraine, the Commission adapted its state aid framework and approved since 2020 a significant increase of state aid for undertakings. We assessed how effectively the Commission adapted the EU’s state aid framework, monitored and evaluated crisis‑related state aid. We also examined the consistency of the state aid framework supporting the European Green Deal and other industrial policy objectives. We conclude that the Commission reacted swiftly to member states’ needs for state aid, but there were shortcomings in the Commission’s monitoring of aid and in the consistency of rules. We recommend that the Commission strengthen its monitoring of state aid, evaluate its impact on competition and streamline the relevant state aid rules for supporting EU industrial policy objectives.

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