The current challenges at the European level (including global) and its financial and economic consequences have caused a major economic slowdown, especially on small businesses, and the European Union (EU) in this period (February-April 2020) has concretely supported through monetary and fiscal policy, respectively through 1. The temporary framework of the European Commission; 2. Fiscal policy instruments and 3. The Multiannual Financial Framework 2014-2020, the Multiannual Financial Framework 2021-2027, the European Green Deal Investment Plan. The State aid financial instrument could also be used during this period to remedy serious economic turmoil. According to official European Commission documents, the Temporary Framework adopted in March 2020 set out temporary State aid measures that the Commission will consider compatible with State aid rules, thus allowing Member States full flexibility in supporting coronavirus-affected economies. The temporary framework was created to respond more effectively to the different needs of the Member States. Moreover, it initially focused on measures to ensure liquidity in the economies of the Member States. In early April this year, it was extended to include measures to support the medical economy and investment, coronavirus-related research and production, measures to relax the social and tax obligations of companies and the self-employed, and measures to subsidize employee salaries, including of micro-enterprises.
Experts argue that the Temporary Framework has included emergency liquidity measures for the business environment, as well as temporary tax deferrals for businesses, which are considered to be the most effective policy measures. Moreover, it is considered that financial support must be carefully dimensioned for each economic agent, so as to avoid both the economic crisis and the financial crisis.
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