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Law360 (April 6, 2020, 8:21 PM EDT) -- The European Commission on Monday signed off on the U.K.'s £50 billion ($61.5 billion) aid package to support British businesses affected by the novel coronavirus outbreak, offering grants, tax advantages, subsidized public loans and support for coronavirus-related research and development.
The plan was the third U.K. aid package to receive approval in the past few weeks under the commission's state aid rules, which are meant to guard against unfair economic support by individual countries' policymakers.
On March 25, the commission greenlit a pair of stimulus packages that offered a guarantee scheme and direct grants to support small and medium-size enterprises impacted by the pandemic.
The package approved on Monday is an "umbrella" plan, according to the commission, and will expand the aid to large corporations. It will offer direct grants, equity injections, selective tax advantages and advance payments, as well as state guarantees for loans and subsidized public loans with favorable interest rates.
The £50 billion "umbrella" plan will also support novel coronavirus-related research and development, including funding to help build and upscale testing facilities for products manufactured to help tackle the outbreak and support for the production of goods aimed at the same goal.
Only businesses that are struggling because of the pandemic can receive the aid, as the commission said those that were having difficulties before the end of last year aren't eligible.
"The commission concluded that the measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of the UK," the watchdog said Monday.
Britain left the European Union at the end of January but remains subject to EU rules for a transition period slated to run until the end of this year.
--Additional reporting by Christopher Cole. Editing by Nicole Bleier.
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