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The unprecedented volume of State aid applications during the COVID-19 crisis presents new economic challenges and policy considerations related to the need for aid and the extent of the damages suffered by undertakings. In light of the current situation, this article presents the foundation for State aid during the outbreak of COVID-19, discusses the methodology for determining the damages using a counterfactual analysis and addresses some of the important factors that policy makers must balance in order to ensure that firms receive the necessary support while minimising the distortions on competition.  Keywords: damage estimation, counterfactual analysis, COVID-19

How to Estimate the COVID-19 Damages? Economic Considerations for State Aid During a Time of Crisis