Unprecedented measures taken by the EU in the face of COVID-19
In light of the COVID-19 crisis that is holding Europe in a deadly grip, EU Member States have implemented unprecedented measures to combat the pandemic and mitigate the socio-economic impact within their respective countries.
On a Union level, the European Commission has taken different actions to alleviate the effects of the crisis and to boost the European economy, namely:
1. Flexibility of the European fiscal rules: so-called general escape clause under the Stability and Growth Pact allowing for more flexibility on government spending, and no policing of fiscal policies.
2. Support through the current State Aid framework, which allows for wage subsidies, suspension of payments of corporate and value-added taxes or social contributions, direct financial support to consumers for cancelled services and support for liquidity shortages .
3. The flexibility of State aid rules through the Temporary Framework.