The European Commission has announced its plans to prolong and extend the scope of the state aid temporary framework to support the economy in the context of the coronavirus outbreak.

In a statement, it said all sections of the temporary framework are prolonged for six months until 30 June 2021, and the section to enable recapitalisation support is prolonged for three months, also until 30 September next year.

The Commission has also adapted the conditions for recapitalisation measures under the temporary framework, in particular for the state's exit from the recapitalisation of enterprises where the state was an existing shareholder prior to the recapitalisation.

The amendment allows the state to exit from the equity of such enterprises through an independent valuation, while restoring its previous shareholding and maintaining the safeguards to preserve effective competition in the single market.