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European guide to
government aid
introduced in response
to COVID-19

PAUL HASTINGS

Introduction

As governments continue to introduce new measures to respond to the economic consequences of COVID-19, businesses are having to digest a swathe of new legislation (most of which has been introduced on an emergency timetable and with little or no consultation) to assess whether they can access reliefs.

The response across Europe has been fragmented: while the Commission has issued guidance, and certain other institutions in Brussels have co-ordinated their response, the vast majority of new legislation has been introduced at a national level, without an overarching framework (other than pre-existing regulations).

To help clients navigate this unprecedented challenge and ascertain whether their businesses may be able to benefit from reliefs, Paul Hastings’ European practice, working alongside select local counsel, has compiled the attached report on the key measures which have been introduced across Western Europe from the perspective of corporates and portfolio assets of financial institutions.

The report focuses on measures which:

  1. Extend liquidity by way of debt financing, and the conditions attaching to such financing;
  2. Implement tax reliefs and extensions of tax payments;
  3. Introduce moratoria with respect to existing insolvency regimes;
  4. Defer rent payments.

Legislation covering reduction of payroll cost and arrangements for employees is covered in a separate report compiled by Paul Hastings and available here.

For further information, please contact your regular Paul Hastings contact or, alternatively one of the lawyers available here

+ Note On Preparation

The following constitutes a general summary collated by Paul Hastings and relevant local counsel in relation to the specific matters set out herein. The summary is not exhaustive and does not take account of all measures introduced by national governments which may be relevant to you, nor has it been drafted with a particular recipient in mind. In light of the speed of developments and the high-level nature of this summary, we recommend you take specific advice in any relevant jurisdiction before taking any action.’