On 2 July 2020, the EU Commission for the first time modified the existing substantive State aid exemptions and guidelines to facilitate the grant of State aid in response to the COVID-19 pandemic (see here and here), while at the same time prolonging their validity. It also amended the Temporary Framework for COVID-19 State aid for the third time on 29 June 2020 (see here and here). More information on the Temporary Framework and its earlier amendments is available here [1st Amendment and 2nd Amendment].

Many businesses are increasingly facing severe business disruption and/or liquidity problems as the COVID-19 outbreak spreads. Supply chains are disrupted, workforces quarantined and customer demand is falling. In response, governments across the EU (and the UK) are pledging to do whatever it takes to keep the economy going and help…