The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

The Level Playing Field in Crisis Mode: State Aid Policy in the COVID-19 Pandemic with a Special Focus on the Tourism Sector1 Zoltán Bartucz2 Péter Staviczky3 Abstract; 1. Introduction; 2. The Basics of European State Aid Law; 2.1. The Principles of State Aid Control; 2.2. What Is and What Is Not State Aid?; 2.3. When Is State Aid Compatible with the Internal Market?; 3. The Commission’s First Reactions to the COVID-19 Outbreak from a State Aid Aspect; 4. The TFEU’s Core Provisions as Legal Base to Handle the Impacts of the Pandemic; 4.1. Article 107(2)(b); 4.2. Article 107(3)(b); 5. Adapting State Aid Rules to the Crisis: Creation and Evolution of the Temporary Framework; 6. Aid Categories Available for Tourism and Examples of Aid Measures in the Tourism and Related Sectors; 6.1. Aid Under Article 107(3)(b) TFEU: Aid Categories of the Temporary Framework; 6.1.1. Limited amounts of aid; 6.1.2. Aid in the form of guarantees on loans; 6.1.3. Aid in the form of subsidised interest rates for loans; 6.1.4. Aid in the form of tax deferrals; 6.1.5. Aid in the form of wage subsidies; 6.1.6. Recapitalisation aid; 6.1.7. Aid for uncovered fixed costs; 6.2. Aid Approved Directly under Article 107(3)(b) TFEU; 6.3. Aid Approved under Article 107(3)(c) TFEU; 6.4. Aid approved under Article 107(2)(b) TFEU; 6.5. The First Judgments Related to COVID-19 Measures Compatible with the Internal Market; 7. Preliminary Conclusions. 1 This article does not reflect the official opinion of the Hungarian Government. The responsibility for the information and views set out in this article lies entirely with the authors. 2 Zoltán Bartucz is a head of unit at the Hungarian State Aid Monitoring Office. 3 Péter Staviczky is the State aid attaché at the Permanent Representation of Hungary to the European Union.

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