Combatting Misuse of Public Funding During COVID-19: Evaluating the European Commission's attempt on making State financial support to undertakings in the Union conditional on the absence of links to non-cooperative jurisdictions

Regulation in times of crisis calls for targeted tools to elude possible disasters. The COVID-19 pandemic marked an unprecedented challenge that called for immediate responses, including legal responses, that aimed at mitigating the economic impact of the crisis. To mitigate economic fallout, the EU implemented coordinated measures to ensure a proportionate application of State aid control, allowing tailored aid solutions for individual Member States. Beyond State aid, the European Commission has taken steps to prevent the misuse of public funding through tax law and public procurement law. This includes recommendations to make State Financial Support conditional on the absence of links to non-cooperative jurisdictions, aiming to prevent financial aid from supporting tax avoidance. This article evaluates the effectiveness of these measures, examining the Commission's initiatives within the COVID-19 State aid framework, the recommendation on non-cooperative jurisdictions, and the integration of public procurement rules as tools against tax avoidance.