Brussels to help struggling companies

The European Commission adopted on the 17 December 2008, under EC Treaty state aid rules, a temporary framework providing Member States with additional possibilities to tackle the effects of the credit squeeze on the real economy. The Framework forms part of the measures announced by the Commission in its 26th November European Economic Recovery Plan (see IP/08/1771) and was approved in record time following consultation with Member States. Due to the drying up of the lending market, even healthy companies may not be able to get the finance they need. This may seriously endanger their business. The new framework therefore introduces a number of temporary measures to allow Member States to address the exceptional difficulties of companies to obtain finance. In particular, Member States will be able to grant without notification of individual cases subsidised loans, loan guarantees at a reduced premium, risk capital for SMEs and direct aids of up to €500,000. All measures are limited until the end of 2010 and subject to conditions. Based on Member States' reports, the Commission will evaluate whether the measures should be maintained beyond 2010, depending on whether the crisis continues.

European Commission: Press Release: IP/08/1993: State aid: Commission adopts temporary framework for Member States to tackle effects of credit squeeze on real economy http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1993&format=PDF&aged=0&language=EN&guiLanguage=en

ESO: Background information: Brussels proposes €200bn stimulus / EU’s stimulus plan met with doubts http://www.europeansources.info/record/brussels-proposes-e200bn-stimulus-eus-stimulus-plan-met-with-doubts/

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