EU approves emergency state-aid ECA measures

(National Law Review, Western Springs IL, 26 March 2020) On 19 March 2020, the European Commission adopted a temporary framework for State aid to support the economy amidst the consequences of the Coronavirus (COVID-19) outbreak. The temporary framework provides for five types of aid, including aid in the form of short-term export credit insurance, as a temporary EU Treaty measure allowing for state aid “to remedy a serious disturbance in the economy of a Member State.” [This move highlights a possible tension within the European community wherein the European Commission is promoting a European Green Deal while the European Council Export Credits Group works with the OECD Export Credit Working Group to promote and protect European corporations, including support for substantial fossil fuel projects. Will short-term export credits for the energy sector be allocated on the basis of a green Europe or the existing fossil fuel dependency? Or will they be used just to shore-up national businesses distressed by the COVID-19 pandemic?]