ISFE welcomes European Commission action to support the economy during the Covid-19 crisis
Every country, company and individual faces significant challenges during this unprecedented global public health crisis. ISFE and our members across Europe and globally are working hard to galvanise video games companies to share ideas and contribute to the wider effort against COVID-19, to support their member companies, employees and player communities, to provide tips and guidance to families on how to structure gameplay sensibly, and to support families with educational resources and virtual workshops.
We urge everyone to stay safe and to look out for each other.
European Commission measures:
Many ISFE member associations include small and medium-sized studios that may face economic challenges because of the Coronavirus.
ISFE welcomes the European Commission’s adoption of a Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the COVID-19 outbreak. Together with many other support measures that can be used by Member States under existing State aid rules, the Temporary Framework enables Member States to ensure that sufficient liquidity remains available to businesses of all types and to preserve the continuity of economic activity during and after the COVID-19 outbreak.
What this means for video game studios across Europe:
- Direct grants, repayable advances or tax advantages
- Guarantees on loans contracted by the companies to the banks
- Loans to private companies by the Member States with subsidised interest rates
The temporary framework means that Member States can step outside the normal state aid framework and immediately act through public support measures that are available to all companies such as wage subsidies, suspension of payments of corporate and value added taxes or social contributions. In addition, Member States can grant financial support directly to consumers, for example for cancelled services or tickets that are not reimbursed by the operator concerned. Member States should inform the Commission of their intentions and notify plans to introduce such measures as early and comprehensively as possible.
Meanwhile, the ISFE team is working remotely and will do its best to deal with any enquiries on this or any other video games industry-related queries.