The outbreak of COVID-19 affects all of us and our goal today is to bring together all of Europe’s resources to tackle this unprecedented situation.
It is both lives and livelihoods that are at stake. Businesses all over Europe – and in particular smaller ones – are struggling with the effects of the actions that governments have had to take, to slow the spread of this virus. So, the European Commission will work quickly and decisively, to help governments use their resources to help citizens and businesses.
Our goal here is to make sure that businesses have the liquidity they need to keep operating, and to make sure the support reaches the companies that need it.
And support for businesses in one Member State must not undermine the unity that Europe needs, a unity that will take us through this crisis. We have to be able to rely on the European single market, to help our economy weather the outbreak, and bounce back strongly afterwards.
Many Member States are taking action. We’ll work closely and quickly with them to help them provide the support which the economy needs. And in a way that limits harm to the single market. As part of that, we will give advice and share templates of schemes that work well.
There are many ways governments can help, without needing state aid approvals.
They can give all businesses, throughout the economy, a breathing space to help them cope – providing wage subsidies, or suspending corporate tax payments or payments of VAT.
But we will need to do more – and the European rules on state aid enable governments to take effective action. To name just three examples on how to compensate for damages and provide liquidity to companies.
First, some sectors, like tourism, transport or hotels and restaurants, they are hit especially hard. So we’re working with governments to put in place schemes that compensate sectors for the damage they have suffered because of the COVID-19 outbreak.
