54 LEGAL IMPACTS OF COVID-19 IN THE TOURISM INDUSTRY Framework (Section 3.2), but as the extent of the guarantees went beyond the maximum in the Temporary Framework, the measure had to be approved directly by the Commission under Article 107(3)(b). The third amendment74, published by the Commission on 29 June, was the first not to introduce new aid categories. Instead, it relaxed the existing ban on undertakings in financial difficulty on 31 December 2019, because start-up companies by nature are often in difficulty on paper (especially in the early phase)75 and before the third amendment, such technically-in-difficulty start-ups were excluded from the scope of the Temporary Framework for most categories. With the changed rules, micro- and small enterprises became eligible under the Temporary Framework even if they had been in difficulty at the end of 2019 (unless they were under an insolvency procedure or received rescue and restructuring aid at the time of the award). In addition, Section 3.10 aid (wage subsidies) was made available for self-employed individuals, i.e. Member States were authorised to support self-employed individuals under wage subsidy rules. The third amendment also saw some minor adjustments to Sections 3.3 (subsidised loans) and 3.11 (recapitalisation aid). Following this amendment, the Temporary Framework was not extended further for three and a half months, implying that the Commission saw the framework as suitable to tackle the issues of the real economy at the time, and chose to wait and see how the crisis moved before making further changes. The fourth amendment76, adopted on 13 October 2020, meant two major developments. First, recognising the protracted nature of the economic crisis, it extended the temporal scope of the Temporary Framework, which was 31 December 2020 originally. Under the prolonged rules, Member States were permitted to grant aid until 30 June 2021. Second, the fourth amendment added a new category, “aid for uncovered fixed costs” (Section 3.12), which was essentially a simplified loss compensation instrument of maximum 3 million euros per beneficiary available to businesses whose revenues had dropped by minimum 30% in the eligible period compared to the same period in 2019. This possibility was designed especially to help undertakings active in the tourism and similar sectors, where revenues dropped significantly and there was no hope that 74 Communication from the Commission 3rd Amendment to the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak C(2020) 4509 final 29 June 2020. 75 Point 7 of the third amendment. 76 Communication from the Commission 4th Amendment to the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak and amendment to the Annex to the Communication from the Commission to the Member States on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to short-term export-credit insurance C(2020) 7127 13 October 2020.
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