THE LEVEL PLAYING FIELD IN CRISIS MODE 37 law does not allow Member States to finance the simple operating costs of the undertakings (e.g. salaries, rental fees, taxes, etc.)4, or to give funding to undertakings not viable under market conditions without the help of the state5. The European Commission solved this conundrum by adopting temporary State aid rules for 2020 to tackle the economic and some social impacts of the pandemic, which were amended several times and recently prolonged until the end of 20216. Member States immediately started to use this temporary tool and notified to the Commission hundreds of aid schemes and some individual measures as well7. Nonetheless, the adoption of a temporary set of State aid rules was not the only policy reaction to the outbreak of the pandemic. The European Commission also changed legislation in other policy areas to provide bigger flexibility for Member States. Just to name a few8, it rearranged and mobilised the rules on European Structural and Investment Funds to allow the use of funds still available for the 2014-2020 period for “anti-virus” purposes9. In addition, the budgetary rules of the European Union, requiring Member States to keep public debt and government deficit under certain thresholds or face legal consequences, were suspended10. In the meantime, the Commission proposed11 to make additional EU funds available beside the multiannual financial framework to put Europe back to the growth path, and meet the most important challenges it is facing. The proposal was adopted end last year after heavy political debates12. 4 With some exceptions, such as the provision of services of general economic interest, helping undertakings or citizens in remote areas, or the production of electricity from renewable energy resources. 5 With the strict exception of rescue and restructuring aid in line with the relevant guidelines and specific rules that apply to the financial sector since 2008. 6 Given that the rollout of vaccination is still slow, a further prolongation is not excluded. 7 The decisions already published, as well as the temporary rules, are available in https://ec.europa.eu/competition-policy/state-aid/coronavirus_en. 8 Given the scope of this article, only the most important proposals and changes in the domain of finances are mentioned. In addition, numerous other measures were taken, including the financing of research of vaccines, buying vaccines jointly for the EU Member States, etc. 9 Sources: https://ec.europa.eu/regional_policy/en/newsroom/news/2020/03/16-03-2020-cohesionpolicy-and-eu-solidarity-fund-contribute-to-the-coronavirus-response-investment-initiative; and https://ec.europa.eu/regional_policy/en/newsroom/news/2020/04/04-02-2020-coronavirus-responseinvestment-initiative-plus-new-actions-to-mobilise-essential-investments-and-resources (accessed on 10 March 2021). 10 Source: https://ec.europa.eu/info/sites/info/files/economy-finance/2_en_act_part1_v3adopted_text.pdf (accessed 10 March 2021) 11 Source: https://ec.europa.eu/info/business-economy-euro/recovery-coronavirus/recovery-andresilience-facility_en (accessed on 10 March 2021). 12 Source: https://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=uriserv%3AOJ.L_.2021.057.01.0017.01.ENG&toc=OJ%3AL%3A2021%3A057 %3ATOC (accessed on 10 March 2021).
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