State aid can have a long tail
As businesses across the EU are receiving State aid due to the COVID-19 crisis, it is worth recalling a decision made by the European Commission on 8 May 2020 dealing with a decision made in 2011 to approve State aid to credit unions in Ireland.
The decision was to prolong, for the 16th time, State aid to credit unions in Ireland in terms of the credit union resolution scheme. The Commission found that the prolongation of the scheme was in line with EU state aid rules (particularly, the 2013 Banking Communication). It has been prolonged until 31 May 2021.
The significance of the decision goes beyond the credit union sector and is a useful reminder to the business community generally that "receiving State aid is not just for the Crisis but it can be for life!"
For more information on this topic please contact Dr Vincent Power, Partner or any member of A&L Goodbody's EU, Competition & Procurement team.
Date published: 15 June 2020