EU's Vestager: Discrepancy in state aid distorts single market, hampers recovery

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The European Union's competition chief Margrethe Vestager has expressed concern about the 'huge differences' in coronavirus state aid among member states, saying they were starting to distort the bloc's single market.

FILE PHOTO: EU Commission Vice-President of the European Commission Margrethe Vestager speaks during a news conference on the strategic orientations of the European Tourism and Transport Package at European Commission in Brussels, Belgium, May 13, 2020. Olivier Hoslet/Pool via REUTERS/File Photo

Germany accounts for more than half of the emergency coronavirus state aid approved by the EU executive, prompting concerns that countries with the deepest pockets might be getting an unfair advantage in the bloc’s single market. “And this has already happened to a certain extent”, Vestager said, according to a pre-released extract of the interview that the newspaper will publish in its Monday edition.

But the executive European Commission suspended the normally-strict state aid restrictions in mid-March, allowing the 27 EU states to pump cash into their economies and companies battered by coronavirus, with more than 1.9 trillion euros worth of national schemes approved so far.

 

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Do basically the Germans have been using the COVID19 crisis to entrench their position as the dominant economic power in the EU while people were worried about other things.

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