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Today, the European Commission has decided to extend and expand the State aid Temporary Framework until 30 June 2022 in the context of the COVID-19 pandemic. The German Federal Government welcomes the extension and in particular the fact that the ceilings for small amounts of aid and assistance for uncovered fixed costs have been further increased.

Economic Affairs Minister Peter Altmaier said: "Today’s extension of the Temporary Framework by the European Commission is an important step. Unfortunately, the situation in the pandemic is very serious again in many European countries. It is therefore right that the European Commission allow for flexibility in the Member States. We must not jeopardise the economic stabilisation of the last few months. As long as our companies and employees need help, we must ensure that they will not be cut off suddenly from support. and in Germany we need to extend the tried and tested COVID-19 assistance until the end of March 2022."

Amendments to the State aid Temporary Framework include the following:

  • increase in the ceilings for small amounts of aid to €2.3 million (€1.8 million to date) and to €345,000 in the fishery/aquaculture sector (€270,000 to date) and to €290,000 in the agricultural sector (€225,000 to date);
  • increase in the ceilings for assistance for uncovered fixed costs to €12 million (€10 million to date);
  • extension of theTemporary Framework until 30 June 2022 (currently set to expire on 31 December 2021);
  • additional possibilities to convert loans;
  • introduction of two new support instruments: "investment support measures for a sustainable recovery" and "solvency support measures".

Numerous German support measures in the context of the pandemic are based on the European Commission’s State aid Temporary Framework. These include the Bridging Assistance, various KfW loans and parts of the Extraordinary Economic Assistance (November/December Assistance). The amendments adopted today have expanded and consolidated the scope for State aid so that companies can be supported effectively during the pandemic.