EU aims to extend looser state aid rules to help virus-hit firms

EU competition regulators plan to extend looser state aid rules until the end of 2021 to help European companies hit by the coronavirus pandemic, including allowing EU governments to grant more funding, the EC said Tuesday. The EU executive eased the rules in March last year to help the 27-country bloc protect jobs in sectors such as airlines, tourism, restaurants and entertainment, and support the economy. Economists said the resurgence in coronavirus cases is the biggest threat to the recovering euro zone economy. The Commission said it has asked EU countries for feedback before making a final decision. “As the second wave of the coronavirus outbreak continues to deeply affect our lives, businesses across Europe are in need of further support to weather the crisis,” European Competition Commissioner Margrethe Vestager said. The Commission also wants to increase the caps for government aids.<br/>