State Aid in the Light of the Corona Virus Pandemic

The impact of the COVID-19 pandemic has hit the economies of the European Union hard. Member states have channeled significant financial resources into the economy and the EU has relaxed the relevant state aid rules designed to protect competition in the Single Market. State aid provided by member states has increased as a result, in some cases sharply. The differing degrees to which the pandemic has affected EU member states and the occassionally considerable discrepancy in state aid provided, both in terms of GDP and as an absolute amount in 2020, has led to fears that competition would be distorted in favour of Germany in particular. However, this is not confirmed by official data and statements of the EU, at least for 2020.