Measures Available to the Romanian State in Order to Protect the Economy the Context of COVID-19 Outbreak

16 March 2020

The precautionary measures taken to limit the risk of spread of COVID-19 have important economic consequences, and there are already a number of industries – such as tourism, event organization, hotel or advertising – that are affected, requiring rapid intervention from the Romanian state.

State aid rules established at European level allow the Romanian state – under certain conditions – to help companies cope with the liquidity deficit.

Additionally, on the basis of Article 107 (2) (b) of the Treaty on the Functioning of the European Union, the Romanian state can compensate companies for the damages caused by extraordinary events.

The European Commission has already qualified  COVID-19 as an extraordinary event, which justifies exceptional measures by the Member States to compensate for the economic damages caused by it.

It is important to keep in mind however that state interventions must maintain the economic balance and that this context should not be used to benefit certain industries or companies to the detriment of others, in the absence of objective justifications.
 
Read about it here.