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• The European Commission has relaxed its State aid rules to allow Member States unprecedented flexibility to support their economies and help individual businesses survive the COVID-19 outbreak.
• The ‘Temporary Framework’ adopted on 19 March 2020 provides Member States with a toolkit of measures to provide support, including direct grants, tax deferrals, public guarantees and subsidized loans, wage subsidies for employees, and support for Coronavirus-related R&D, testing facilities and products.
• The Commission is now proposing a further relaxation to enable Member States to inject cash for equity as a last resort, although with conditions attached. The Commission is coordinating in parallel with Member States to prevent opportunistic takeovers of strategic assets by foreign purchasers during this time of crisis.