The European Commissioner for Competition, Margrethe Vestager, has warned against aid to companies put in difficulty by the coronavirus pandemic which would take the form of public subsidies, in an interview with the daily Opinion published on Monday.
“We anticipate business recapitalization needs in the weeks and months to come. There are different ways to do this. If it is by offering company shares for sale, no problem. But if this is a real public recapitalization, where the state pays money, be careful, ”she underlines.
"Money must not be misused"
“At the moment, direct aid to businesses takes the form of grants, tax advantages and repayable advances of up to 800,000 euros. All this poses no problem, ”adds the European commissioner, however. It also judges that recapitalized companies should not buy back shares or pay dividends.
“The taxpayer is put to contribution and must receive the profits if there are any. The money must not be misused and managers must have an interest in the state withdrawing, "she said, targeting bonuses and variable compensation of leaders.
The European commissioner indicates that she is currently studying the proposals of the governments as regards assistance to the companies in difficulty. "We will study the comments of the states, discuss them with the Commission, and should arrive at a balanced set of rules in less than a few weeks", she foresees while warning that "there is a risk of conflicts between states members ".
"Crucial to find European solutions"
"Another discussion in progress, which will continue in the coming weeks, concerns the financial capacities of the States. No matter how we build our public aid rules, not all countries will be able to use them. This is one of the points which could make the rules of the game very inequitable: some Member States will have the means to help their businesses and others which would like it will not have the necessary money ”.
Margrethe Vestager welcomes the agreement of member states to a support plan of 500 billion euros, considering it "crucial to find European solutions".
Economy
Coronavirus: The ECB takes out heavy artillery with an emergency plan of 750 billion euros
Economy
Coronavirus: 120 billion euros lost over eight weeks for activity in France
- Covid 19
- Coronavirus
- Europe
- Business
- Economy
- European Commission