Daily News 28 / 07 / 2020

Coronavirus: Commission and European Investment Fund unlock €100 million for businesses

The Commission and European Investment Fund have developed a set of measures to support the venture capital market and innovative companies impacted by the coronavirus pandemic. The measures, channelled through the InnovFin Equity Facility within Horizon 2020, will translate into additional liquidity to strengthen the capital base of European SMEs and small mid-cap companies. In addition, a new €100 million Recovery Equity Facility for Innovative Technology will be launched to  provide top-up investment capacity to fund managers to further support their portfolio companies negatively impacted by the crisis. Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth, said: “Small and medium businesses form the backbone of the European economy and at the same time they are among the ones most exposed to disruption in the current coronavirus crisis. I am very pleased that today, together with the European Investment Fund, we are stepping up our support for the venture capital market, in view of providing supplementary liquidity to SMEs that have thinner reserves and limited financial alternatives. We will continue our efforts, through the InnovFin and Horizon 2020, to ensure that these businesses endure and come out strong from the crisis, while at the same time supporting sustained employment and the conditions needed for innovation and future growth.” The new support measures will be rolled out based on a call for expression of interest. Further information is available in a press release. (For more information Johannes Bahrke – Tel.: +32 229 58615; Charles Manoury - Tel.: +32 229 13391)

From lab to market: over €8 million to exploit research results

The Commission announced today that 55 researchers have been awarded €150,000 each in European Research Council ‘Proof of Concept' grants, to explore the commercial or societal potential of their research results. Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth, said: “Research can be revolutionary in generating new knowledge, but facilitating the transfer of this knowledge to the economy and society can be difficult. The EU is here to help bridge the gap.” The awarded projects cover a variety of topics, including making ‘sticky' gecko-inspired technology to more efficiently automate the assembly of products with tiny parts, and using algorithms and artificial intelligence to tap into the international digital music industry by producing song lyric metadata for playlist generators. The new grants were awarded to ERC funded researchers working in 11 countries across the EU and outside, and are part of the EU's research and innovation programme Horizon 2020. More information is available in this ERC press release, the list of the 55 grant recipients is here and examples of ERC projects are here. (For more information Johannes Bahrke – Tel.: +32 229 58615; Charles Manoury - Tel.: +32 229 13391; Marietta Grammenou – Tel.: +32 229 83583)

Global coronavirus response: EU sends assistance to tackle pandemic in Kenya, Bangladesh, Ecuador and El Salvador

This week, the EU continues its global deliveries of medical supplies and personal protective equipment. Through the EU Civil Protection Mechanism, in response to a request from Kenya, Slovakia has sent 20,000 protective face masks, 50,000 coronavirus test kits, hand disinfectant and laboratory supplies to the country. On its return to Europe the Slovak flight will repatriate EU citizens stranded in Kenya due to the coronavirus pandemic. Furthermore, France is sending medical supplies and equipment to Bangladesh, Ecuador and El Salvador this week via the Mechanism. “To limit the spread of the coronavirus we have to act together, globally. I am proud to see Slovakia provide vital protective and medical equipment to Kenya and France's offer for assistance to Bangladesh, Ecuador and El Salvador, with EU support. The EU's global response is helping tackle the pandemic on multiple fronts”, said Commissioner for Crisis Management, Janez Lenarčič. Protective equipment such as masks, but also test kits and other material, have proven vital to slow down the spread of the coronavirus.  Any country in the world can call on the EU Civil Protection Mechanism for help. During this ongoing pandemic, the Mechanism has coordinated the delivery of assistance to 24 countries, including 7 EU Member States, on top of bilateral offers. (For more information: Balazs Ujvari - Tel.: +32 229 54578; Daniel Puglisi – Tel.: +32 229 69140)

La commissaire Simson participe à la cérémonie mondiale marquant le début de la phase d'assemblage d'ITER

Ce matin, la commissaire à l'énergie, Kadri Simson, les dirigeants des autres membres d'ITER (la Chine, l'Inde, le Japon, la Corée, la Russie, les États-Unis, ainsi que la France, pays hôte) et la présidence allemande du Conseil de l'UE ont marqué le début de la phase d'assemblage d'ITER. C'est le premier et plus grand projet au monde à générer de l'énergie de fusion, en cours d'installation à Saint-Paul-lès-Durance dans le sud de la France. Au cours de la dernière décennie, 35 pays ont uni leurs efforts dans ce projet international de science et de recherche et, ensemble, ils ont conçu et construit les pièces d'une machine à fusion. Les composants ont été fabriqués, construits et expédiés du monde entier, et ils sont maintenant prêts à être installés en France par une équipe d'assemblage de 3 000 personnes. Ce projet peut apporter une contribution à long terme à la lutte contre le changement climatique. Il marque une étape importante vers la production d'une énergie de fusion propre, décarbonée, sûre et durable, reproduisant la puissance de fusion du soleil. Lors de son discours à la cérémonie de ce matin, la commissaire Simson a déclaré : « Aujourd'hui, nous marquons une étape importante pour le projet ITER et pour le développement de l'énergie de fusion. Dix ans de travail et dix millions de composants aboutiront au plus grand dispositif de recherche sur la fusion au monde. Nous ne pouvons pas sous-estimer l'importance de cela comme une réalisation technique. Presque chaque élément individuel d'ITER est à la pointe de son domaine. Et j'ai hâte de voir ces composants extraordinaires dans ce projet véritablement international se combiner pour créer quelque chose même plus que la somme de ses parties. » L'événement, co-organisé par le président français Emmanuel Macron et le directeur général d'ITER Bernard Bigot, a lieu ce matin avec des représentants de tous les membres d'ITER présents en personne ou virtuellement. La diffusion en direct de la cérémonie est en cours et une conférence de presse est prévue à 12h30 (CEST); les deux peuvent être suivis en ligne ici. Pour plus d'informations sur ITER et l'étape d'aujourd'hui, cliquez ici à partir de 13h00. (Pour plus d'informations: Tim McPhie - Tél.: +32 229 58602; Ana Crespo Parrondo - Tél.: +32 229 81325)

State aid: Commission approves € 866 million Czech scheme to support businesses affected by coronavirus outbreak

The European Commission has approved a CZK 22.9 billion (approximately €866 million) Czech wage subsidy scheme providing support to enterprises affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. By contributing to their wage costs, this scheme supports undertakings that, due to the coronavirus outbreak, would otherwise lay off personnel. The scheme is accessible to employers of all sizes and covers wages in the period between 12 March and 31 August 2020. It will support around 280,000 undertakings. The aid amounts to 80% of the wage costs (including social security and health insurance contributions), capped at CZK 39,000 (approximately €1,475) per month, for employees who cannot work because of a quarantine or a closure/restriction ordered by the authorities. Support is set at 60% of the wage cost, capped at CZK 29,000 (approximately €1,100) per month, when the employer's business is affected in a different way by the coronavirus outbreak (reduced demand, unavailability of supply). The scheme aims at alleviating the employers' costs and avoiding lay-offs and at helping to ensure that employees can remain in continuous employment during the period for which the aid is granted. The Commission assessed the measure under EU State aid rules, and in particular Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures implemented by Member States to remedy a serious disturbance in their economy. The Commission found that the Czech scheme is in line with the conditions set out in the Temporary Framework. The Commission therefore concluded that this measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measures under EU State aid rules. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This wage subsidy scheme, with an estimated budget of € 866 million, will further support businesses that are severely affected by the coronavirus outbreak. The measure aims at maintaining employment in Czechia and providing support for approximately 280 000 undertakings. We will continue working closely with the Member States to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU State aid rules.” (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

State aid: Commission approves UK guarantee scheme to stabilise trade credit insurance market in coronavirus outbreak

The European Commission has approved, under EU State aid rules, a UK guarantee scheme to support the trade credit insurance market in the context of the coronavirus outbreak. Trade credit insurance protects companies supplying goods and services against the risk of non-payment by their clients. Given the economic impact of the coronavirus outbreak, the risk of insurers not being willing to maintain their insurance coverage has become higher. The UK scheme ensures that trade credit insurance continues to be available to all companies, avoiding the need for buyers of goods or services to pay in advance, therefore reducing their immediate liquidity needs. The measure has a maximum budget of approximately €11 billion (GBP 10 billion). The Commission assessed the measure under Article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures implemented by Member States to remedy a serious disturbance in their economy. The Commission found that the scheme notified by the UK is compatible with the principles set out in the EU Treaty and is well targeted to remedy a serious disturbance to the British economy. In particular, (i) the trade credit insurers have committed to the UK to maintain their level of protection as before the coronavirus outbreak in spite of the current difficulties; (ii) the guarantee is limited to only cover trade credit originated until the end of this year; (iii) the scheme is open to all credit insurers in the UK; (iv) the guarantee mechanism ensures risk sharing between the insurers and the State; and (v) the guarantee fee provides a sufficient remuneration for the UK. The Commission found that the scheme notified by the UK is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the general principles set out in the State aid Temporary Framework. Furthermore, the Commission has found the scheme is in line with the Short-term export-credit Communication. On this basis, the Commission has approved the measure under EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.57451 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

State aid: Commission approves a €50 million Belgian scheme for companies active in the events sector in Flanders and affected by the coronavirus outbreak

The European Commission has approved a €50 million scheme to support companies active in the Flemish events sector that have been affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020. The objective of the scheme is to provide the necessary financing and insurance to companies active in the Flemish events sector in order to fund the restart of their activities, thereby enabling them to organize an event, to make investments, and to place orders. The support will take the form of repayable advances of a minimum amount of €25,000 and a maximum amount of €800,000, calculated as a maximum of 60% of the total costs of the event, as budgeted in the company's business plan. The repayable advance will have to be reimbursed if the event actually takes place.  Conversely, the repayable advance will not have to be reimbursed if the event is cancelled because of the coronavirus outbreak or of related measures adopted by the competent authorities. The Commission found that the Belgian scheme is in line with the conditions set out in the Temporary Framework. In particular: (i) the repayable advances do not exceed the maximum ceiling of €800,000 per company; (ii) the aid measure is limited in time until 31 December 2020; (iii) medium and large enterprises that were in difficulty on 31 December 2019 are excluded as beneficiaries; and (iv) the measure will respect the rules on cumulation with other types of aid. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, Commission approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.58081 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

State aid: Commission approves €123 million Polish scheme to support companies affected by coronavirus outbreak

The European Commission has approved a €123 million (PLN 545 million) Polish scheme to support companies affected by  the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The support will take the form of: (i) a reduction of the annual fee due for the perpetual usufruct, and (ii) an exemption of the rent, lease or usufruct fees owed by companies that use publicly owned real estate for their business activities. The measure will apply to both real estate owned by the Polish State and to that owned by local authorities, subject to their agreement. The objective of the measure is to mitigate the liquidity shortages that  companies have experienced as a result of the coronavirus outbreak by reducing certain real estate fees they have to bear in connection with their business activities. The Commission found that the Polish scheme is in line with the conditions set out in the Temporary Framework. In particular: (i) the reductions and exemptions do not exceed €800,000 per undertaking (€100,000 per undertaking active in the primary production of agriculture products; €120,000 per undertaking active in the fishery and aquaculture sector) as provided by the Temporary Framework; (ii) the aid measure is limited in time; and (iii) undertakings that were in difficulty on 31 December 2019 are excluded. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.57726 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

State aid: Commission approves €1 million Romanian aid scheme for airlines starting or resuming operations at Oradea airport following the coronavirus outbreak

The European Commission has approved a €1 million Romanian scheme for those airlines resuming or starting flights to and from Oradea airport in Romania. Oradea airport plays an important role in the regional and international connectivity of the country. The scheme was approved under the State aid Temporary Framework. It provides aid in the form of direct grants and will be accessible in a transparent manner to all interested airlines starting or resuming operations at Oradea airport. The aid will be allocated following an evaluation of the number of destinations, frequency of flights and the estimated number of passenger generation in the first year following receipt of the aid. The objective of the measure is to support the activity of those air operators, and support the economic recovery and structural viability of the region in the context of the coronavirus outbreak. The Commission found that the Romanian scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid will not exceed €800,000 per company and will be granted before 31 December 2020. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.57817 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

State aid: Commission approves €19 million Latvian scheme in support of the tourism and events organisation sectors affected by the coronavirus outbreak

The European Commission has approved a €19 million Latvian scheme to support tourism and events operators, which had to limit, suspend or cease their activities due to the emergency measures adopted in order to limit the spread of the coronavirus. The measure was approved under the State aid Temporary Framework. The public support will take the form of direct grants and will amount to 30% of the mandatory state social security contributions paid by the beneficiary in 2019. Companies that have faced an income loss of at least 30% over one month during the period from April to June 2020, compared to the same month in 2019, will be eligible for aid under this scheme. In addition, the grants should be used for the remuneration of employees' work. The aim of the measure is to facilitate access to finance and to mitigate the sudden liquidity shortages that the affected companies are facing. The Commission found that the Latvian measure is in line with the conditions set out in the Temporary Framework. In particular, (i) the support will not exceed €800,000 per company and (ii) aid under the measure will be granted no later than 31 December 2020. The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. On this basis, the Commission approved the measure under EU State aid rules.More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.58072 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.(For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

Mergers: Commission clears the acquisition of sole control of BASF's Construction Chemicals Business by the Lone Star Group

The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of BASF's construction chemicals (EB) business (“BASF's EB business”) of Germany by the Lone Star Funds group (“Lone Star”) of the U.S. BASF's EB business produces and distributes in the European Economic Area (“EEA”) chemical based admixtures and construction systems for new constructions, maintenance, repair and renovation of residential and commercial buildings, as well as infrastructure. Lone Star is a private equity firm that invests globally in real estate, equity, credit and other financial assets. It controls Xella International S.A. (“Xella”) of Germany and Stark Group A/S (“Stark”) of Denmark. Xella is a producer of building and insulation materials in the EEA. Stark is a building materials distributor in the Nordic countries and Germany. The Commission concluded that the proposed transaction would raise no competition concerns given the very limited horizontal overlap between the activities of BASF's EB business with those of Xella. Likewise, given several other well-established competitors in each of these markets, the vertical overlaps between the activities of BASF's EB business with those of Xella for building and insulation materials and Stark for building materials distributor do not give rise to competition concerns. The transaction was examined under the normal merger review procedure. More information is available on the Commission's competitionwebsite, in the public case register under the case number M.9736. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

Mergers: Commission clears acquisition of control overIndependent Clinical Services by Onex Corporation

The European Commission has approved, under the EU Merger Regulation, the acquisition of control overIndependent Clinical Services (“ICS”) of the UK by Onex Corporation (“Onex”) of Canada. ICS provides workforce management solutions, health and social care services and staffing services to the healthcare, social care and life sciences sectors. It is present primarily in the UK and to a limited extent in the rest of Europe, the U.S. and Asia-Pacific. Onex invests in various businesses worldwide including in electronics manufacturing services, healthcare imaging, insurance services, packaging products and services, business and information services, and food retail and restaurants. The Commission concluded that the proposed acquisition would raise no competition concerns, because of its limited impact on the market. The transaction was examined under the simplified merger review procedure. More information is available on the Commission's competition website, in the public case register under the case number M.9855. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

Concentrations:  La Commission approuve le projet d'acquisition de KP1 par Blackstone

La Commission européenne a approuvé, en vertu du règlement européen sur les concentrations, l'acquisition de KP1 Services S.A.S. (« KP1 ») basée en France par The Blackstone Group Inc. (« Blackstone ») basé aux États Unis. KP1 développe, conçoit, fabrique et vend des matériaux de construction pour des bâtiments résidentiels, commerciaux et industriels en France. Blackstone est un gestionnaire d'actifs au niveau mondial qui opère en tant que société de gestion de portefeuille. Blackstone contrôle Building Materials Europe, un distributeur de matériaux de construction aux professionnels, entrepreneurs spécialisés et clients des magasins de bricolage. La Commission a conclu que la concentration envisagée ne soulève pas de problème de concurrence, étant donné que Blackstone n'a ni la capacité ni l'incitation à restreindre l'accès des concurrents en aval aux éléments préfabriqués et non-bétonnés, ni l'accès des concurrents en amont à une base de clientèle suffisante pour la fourniture au détail de matériaux de construction aux clients finaux professionnels. La transaction a été examinée dans le cadre de la procédure normale de contrôle des concentrations. De plus amples informations sont disponibles sur le site internet concurrence de la Commission, dans le registre public des affaires sous le numéro d'affaire M.9790. (Pour plus d'informations: Arianna Podesta – Tél. +32 229 87024; Giulia Astuti – Tél.: +32 229 55344)

Eurostat press releases