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To Aid and How to Aid:

Policy Options to Preserve Markets

Georgiana Pop, Ana Amador

DOI https://doi.org/10.21552/estal/2020/2/4

Keywords: COVID-19, coronavirus, subsidies, design, general measures, EU Temporary Framework


All countries across the globe are speeding up economic measures to tackle the impact of the coronavirus pandemic. Many of these measures, which have adopted different forms, fundamentally aim at providing liquidity to companies and reducing the pressure on cash-flows of most affected sectors. Even if subsidies and State aid can provide immediate support to ailing companies in extraordinary circumstances, governments should not forget the disruptive effects that subsidies can bring on competition and international trade in the longer run.
Keywords: COVID-19, coronavirus, subsidies, design, general measures, EU Temporary Framework

Georgiana Pop is the Global Lead for Markets and Competition Policy within the World Bank Group. Ana Amador is a Consultant for the Markets and Competition Policy of the World Bank Group. For correspondence: <mailto:gpop@worldbank.org> and <mailto:aamadorgil@ifc.org>.

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