BRUSSELS, Jan 19 (Reuters) - EU competition regulators plan to extend looser state aid rules until the end of 2021 to help European companies hit by the coronavirus pandemic, including allowing EU governments to grant more funding, the European Commission said on Tuesday.
The EU executive eased the rules in March last year to help the 27-country bloc protect jobs in sectors such as airlines, tourism, restaurants and entertainment, and support the economy.
Economists said the resurgence in coronavirus cases is the biggest threat to the recovering euro zone economy.
The Commission said it has asked EU countries for feedback before making a final decision.
"As the second wave of the coronavirus outbreak continues to deeply affect our lives, businesses across Europe are in need of further support to weather the crisis," European Competition Commissioner Margrethe Vestager said in a statement.
The Commission also wants to increase the caps for government aid, which currently stand at 120,000 euros for companies in fisheries and related sectors, 100,000 euros for agricultural producers and 800,000 euros for companies in other sectors.
EU governments will also be able to contribute more than 3 million euros to the companies' fixed costs which are not covered by their revenues.
They will also be able to convert contributions of up to 120,000 euros for companies in fisheries and related sectors, 100,000 euros for those in in agriculture, and 800,000 euros for companies in other sectors, into direct grants at a later stage. (Reporting by Foo Yun Chee; Editing by Robin Emmott and Giles Elgood)
