Thread by @Barnes_Joe

1: Some questions have been raised regarding the UK's #coroanvirus state aid package and whether the European Commission would move to block any measures while the country remains in the post-Brexit transition period? A few thoughts

2: Chancellor Rishi Sunak has effectively signed a blank cheque to help citizens and businesses through the economic impact of the pandemic. Package includes: £2,500 a month for workers who would have been made redundant and £350bn in loans, grants and tax breaks

3: Claims have emerged that Brussels could challenge the £20bn package for the leisure, retail and hospitality sector in the form of a 12-month business-rates holiday.

4: Here's what the Commission has to say about the UK's announced measures. A spox said: 'The Commission is in close and constructive contact with UK authorities. The Temporary Framework enables national governments to use the full flexibility foreseen under the state aid rules.'

5: They add: 'The Commission will assess possible national support measures linked to the consequences of the Covid-19 outbreak as a matter of priority.'

6: Commission's new relaxed state aid rules allow for capitals to set up grants up to €800k to a company to help its liquidity needs, state guarantees for loans taken by firms from banks, state-subsidised loans to firms and safeguards for banks.

7: Brussels has also made clear that it supports deferring or suspension of corporate taxes, and supporting consumers by reimbursing for cancelled services or tickets that aren't paid for by the operator.

8: This is just the framework the Commission is working within, but it doesn't mean it will not allow governments to go above and beyond the ceiling. EU capitals, and Britain, can simply notify the Commission if they want to go further. A few examples:

9: The Commission signed off on Denmark's €12 million package, within 24 hours, to compensate organisers for the damage suffered due to the cancellation of large events with more than 1,000 participants.
ec.europa.eu/commission/pre…

10: The Commission signed off on France's €300 billion package of support for companies, including state-guaranteed loans and credit lines for firms with 5,000 staff or more, and guarantees for banks. Sanctioned within 48 hours.
ec.europa.eu/commission/pre…

11: To finish up, I'm yet to speak to anyone who really believes the Commission will stand in the way of EU capitals, or the UK, from delivering the financial support necessary to prop up their businesses and citizens through the coronavirus outbreak – wouldn't be a good look.