EFTA Surveillance Authority on State aid to EEA EFTA States in response to the COVID-19 crisis

The EFTA Surveillance Authority (ESA) announced today that it has set up a dedicated task force to assist the Icelandic, Liechtenstein and Norwegian authorities with any support measures for citizens or companies that they plan to set up in response to the COVID-19 pandemic, which may constitute State aid within the meaning of Article 61(1) of the European Economic Area (EEA) Agreement. The ESA has also expressed its commitment to process any queries or proposed measures in a swift and efficient manner.

The ESA has stressed that measures or schemes favouring specific companies or the production of certain goods may constitute State aid and, therefore, will have to fit the existing State aid legal framework. In this regard, it has recalled that:

• Article 61(2)(b) of the EEA Agreement enables the EEA EFTA States to compensate specific companies or specific sectors (in the form of schemes) for the damage directly caused by exceptional occurrences, such as those caused by the COVID-19 pandemic. This includes measures to compensate companies in sectors that have been particularly hard hit (such as transport, tourism and hospitality) and measures to compensate organisers of cancelled events for damages suffered due to the outbreak.
• Article 61(3)(c) of the EEA Agreement enables States to help companies cope with liquidity shortages and in need of urgent rescue aid. The ESA has recalled in this regard the Rescue Aid and Restructuring Guidelines, as well as the possibility for companies that are not (yet) in difficulty to receive such support, if they face acute liquidity needs due to exceptional and unforeseen circumstances such as the COVID-19 pandemic.
• Article 61(3)(b) of the EEA Agreement allows the EEA EFTA States to grant support to remedy a serious disturbance to their economy in case of particularly severe economic situations.

More information is available on the ESA’s website.