Daily News 31 / 07 / 2020

EU-Vietnam trade agreement enters into force

The EU-Vietnam trade agreement, the most comprehensive trade agreement the EU has concluded with a developing country, will apply as of tomorrow, 1 August. President of the European Commission, Ursula von der Leyen, said: “The European economy needs now every opportunity to restore its strength after the crisis triggered by the coronavirus. Trade agreements, such as the one becoming effective with Vietnam today, offer our companies a chance to access new emerging markets and create jobs for Europeans. I strongly believe this agreement will also become an opportunity for people of Vietnam to enjoy a more prosperous economy and witness a positive change and stronger rights as workers and citizens in their home country.” Commissioner for Trade, Phil Hogan, commented: "Vietnam is now part of a club of 77 countries doing trade with the EU under bilaterally agreed preferential conditions. The agreement strengthens EU economic links with the dynamic region of South-East Asia and has an important economic potential that will contribute to the recovery after the coronavirus crisis. But it also shows how trade policy can be a force for good. Vietnam has already made a lot of effort to improve its labour rights record thanks to our trade talks and, I trust, will continue its most needed reforms.” The agreement will ultimately scrap duties on 99% of all goods traded between the two sides. Doing business in Vietnam will also become easier for European companies: they will now be able to invest and pitch for government contracts with equal chances to their local competitors. Under the new agreement, the economic benefits go hand in hand with guarantees of respect for labour rights, environment protection and the Paris Agreement on climate, through strong, legally binding and enforceable provisions on sustainable development. EU Member States in the Council and the European Parliament approved the agreement respectively in June 2019 and February 2020. For more information, see the press release, memo, factsheets on benefits of the EU-Vietnam trade agreement, agriculture, standards and values, and on all individual EU countries' trade with Vietnam; examples of small European companies doing business with Vietnam, infographic and a dedicated website. (For more information: Daniel Rosario – Tel.: +32 229 56185; Kinga Malinowska – Tel.: +32 229 51383)

Coronavirus: Commission strengthens support for treatment through convalescent plasma

Today, the Commission has invited more than 200 blood-collection services around the EU to apply for funding for the purchase of plasmapheresis equipment, i.e. equipment that takes plasma from donors. The aim of this action is to support the treatment of new COVID-19 patients who are fighting the disease, by increasing EU capacity to collect convalescent plasma, which is plasma from recovered COVID-19 patients. This action is part of the Emergency Support Instrument (ESI). Grants will be provided to public and NGO blood-collection services authorised to collect plasma. The treatment consists of transfusing convalescent plasma to sick patients to boost their immunity and ability to fight the disease. Plasma transfusion is also used to purify antibodies to make a COVID-19 specific medicinal product (immunoglobin) as short-term alternative to vaccines. Stella Kyriakides, Commissioner for Health and Food Safety, said: “Convalescent plasma could be a promising treatment for COVID-19. With the financing we put forward today, we are able to go a step further in plasma collection and I invite all relevant stakeholders to make use of it. We will continue to explore all possible options to support the development and access to safe and effective treatments for COVID-19 to protect our citizens. This remains our primary objective in the weeks and months ahead.” This action demonstrates the Commission's commitment to developing therapeutics, as specified in the EU health preparedness for possible future outbreaks communication. A press release is available online. (For more information: Stefan De Keersmaecker – Tel.: +32 229 84680; Darragh Cassidy – Tel.: +32 229 83978)

Respect du droit de l'UE par les États membres en 2019: beaucoup reste à faire

La Commission publie aujourd'hui le rapport annuel sur le contrôle de l'application du droit de l'UE, qui expose la manière dont la Commission a suivi et contrôlé l'application du droit de l'UE en 2019 et indique les résultats obtenus par les États membres dans divers domaines d'action. L'application effective du droit de l'UE importe aux citoyens, car elle garantit les droits et bénéfices qui découlent de ce droit et dont ils seraient privés sinon. Elle importe aussi aux entreprises, car elle est le gage de conditions de concurrence équitables dans l'ensemble du marché intérieur. Si le nombre de procédures d'infraction ouvertes est demeuré stable l'an dernier, en revanche, le nombre de nouvelles procédures d'infraction a connu une augmentation de plus de 20 % par rapport à l'année précédente. Le Luxembourg, l'Estonie et la Lituanie comptaient le nombre le plus faible de nouvelles procédures ouvertes pour transposition incorrecte ou mauvaise application du droit de l'UE en 2019, tandis que l'Espagne, l'Italie et la Grèce en comptaient le nombre le plus élevé. La Commission a continué de faire appliquer strictement les règles dans tous les domaines d'action, tout en donnant la priorité aux domaines ayant l'incidence la plus forte sur la vie quotidienne des particuliers et des entreprises. Parmi les principaux domaines d'action ciblés figuraient l'environnement, le marché intérieur, l'industrie, l'entrepreneuriat et les PME, ainsi que les transports et la mobilité. Ensemble, ils ont représenté la moitié de toutes les procédures. La Commission a ainsi pris des mesures à l'encontre de trois États membres pour pollution atmosphérique excessive et à l'encontre de cinq autres pour n'avoir pas garanti un accès équivalent pour les utilisateurs handicapés au numéro d'appel d'urgence unique européen 112. L'application du droit de l'UE repose sur la coopération. C'est pourquoi la Commission européenne soutient activement les États membres en mettant en œuvre le droit de l'UE au moyen d'orientations et d'un dialogue. En 2019, elle a mis un accent particulier sur l'aide apportée aux autorités nationales et régionales pour l'application des règles en matière de gestion des déchets, de qualité de l'air, d'efficacité énergétique, de marchés agricoles et d'égalité entre les hommes et les femmes. Vous trouverez plus d'informations dans un communiqué de presse, ainsi que des fiches d'information par pays. Le rapport est disponible ici. (Pour plus d'informations : Dana Spinant – Tél.: +32 2 299 01 50; Ewelina Juszczak – Tél.: +32 2 299 17 45)

Commission publishes study on directors' duties and sustainable corporate governance    

Today, the Commission published the findings of its study on directors' duties and sustainable corporate governance. The study shows that listed companies within the EU still tend to focus on short-term benefits of shareholders rather than on the long-term interests of companies. In its Communication on the European Green Deal as well as the recent Repair and prepare recovery plan, the Commission had highlighted that sustainability should be further embedded into the corporate governance framework. Didier Reynders, Commissioner for Justice, said: “I am committed to achieving a more sustainable corporate governance. By sustainable, we mean encouraging businesses to frame decisions in terms of environmental, social and human impact for the long-term, rather than focuses on short-term gains. This study, focusing on directors ‘duties, helps us see the root causes of ‘short-termism' and identify possible EU-level solutions. We see support for mandatory rules, encompassing both director duties and a corporate due diligence duty. Therefore the Commission is launching work for an initiative on sustainable corporate governance. The aim is to enable companies to overcome short-term pressures, act in the best long-term interest of the company while being accountable for the sustainability of their companies' business conduct.  This will be beneficial for the sustainability of the businesses as well as for reaching the UN Sustainable Development Goals and the goals of the Paris Agreement on climate.” The data assessed by the study indicates a clear upward trend in corporate payouts to shareholders compared to revenues, while the ratio of investment to revenues has been declining. Its main findings suggest that there is growing pressure from investors as well as a lack of a strategic perspective over sustainability risks, impacts, and opportunities. The study also finds that current board remuneration structures and board expertise pose challenges for sustainability. Furthermore, there is a lack of stakeholder input in the company's decision-making and limited enforcement of the directors' duties when it comes to acting in the long-term interests of the company. A public consultation on sustainable corporate governance will be launched in autumn 2020. The Inception Impact Assessment for the initiative laying out the Commission's initial ideas on the reasons for and the aims of the initiative is open for feedback. Today's study has been conducted under Action 10 of the Commission's 2018 Action Plan on Financing Sustainable Growth, together with the Study on Due Diligence requirements through the supply chain. Full details can be read on the study.  (For more information: Adalbert Jahnz - Tel.: +32 229 53156; Guillaume Mercier - Tel.:+32 229 80564; Charles Manoury – Tel: +32 229 13391)

State aid: Commission approves €840 million German guarantee scheme to protect consumers and support the travel industry in the context of the coronavirus outbreak

The European Commission has approved, under EU State aid rules, a German State guarantee scheme worth €840 million to cover vouchers issued by travel operators for cancelled travel packages booked prior to 8 March 2020. This scheme is in line with the objectives pursued by the Commission Recommendation (EU) 2020/648 adopted on 13 May 2020 to make vouchers an attractive and reliable alternative to cash reimbursements. All customers of travel organisers who have a right to a refund under the EU Package Travel Directive can benefit from these secured vouchers regardless of their service provider as long as German law is applicable.With this scheme, the German State aims at ensuring that any traveller that accepts a voucher issued by a travel operator will be able to either use it or receive a full refund. The vouchers will remain valid until 31 December 2021. If not used before this date, the full amount paid will be reimbursed to the customer. By guaranteeing repayment of these vouchers in the event of insolvency of the tour operator concerned, today's scheme aims (i) to protect consumers, (ii) to ensure effective settlement of related refunds or reimbursements to travellers, and (iii) to ease liquidity pressure on the travel industry by encouraging the uptake of vouchers instead of direct repayment The Commission found that the measure is in line with Article 107(3)(b) TFEU, which enables the Commission to approve State aid measures to remedy a serious disturbance to the economy of a Member State. The Commission found that the scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the German economy. On this basis, the Commission approved the measure under EU State aid rules. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: "The rights of consumers to be compensated for cancelled bookings must be ensured, even in these difficult times for the travel industry due to the coronavirus outbreak. The use of vouchers should be encouraged and travelers should be able to accept them without fear of losing their money. This €840 million German guarantee scheme will protect consumers, while helping companies in the travel industry to cover their immediate liquidity needs and continue their activities.” A press release is available online.(For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

State aid: Commission approves €114,000 Latvian scheme to support cooperatives active in the forestry sector affected by coronavirus outbreak

The European Commission has approved a €114,000 Latvian scheme to support cooperatives active in the forestry sector affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The public support will take the form of direct grants and will be open to cooperatives providing forest services. The measure aims at ensuring sufficient financial resources for forestry cooperatives that have suffered in May and June 2020 a decrease in turnover of at least 20% compared to the same period in 2019. The measure is expected to support a maximum of three undertakings. The purpose of the scheme is to help those undertakings to continue their activities during and after the coronavirus outbreak. The Commission found that the Latvian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €800,000 per beneficiary and (ii) the scheme will run until 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 measures 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.58117 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 €95 million Polish scheme to support companies active in the primary agricultural sector affected by coronavirus outbreak

The European Commission has approved an approximately €95 million (PLN 420 million) Polish scheme to support companies active in the primary agricultural sector affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The support, which will take the form of direct grants, will be open to micro, small and medium-sized undertakings active in the primary agricultural production sector. The measure is expected to support 60,000 enterprises. The aim of the scheme is to address the liquidity needs of farmers who are affected by the economic impact of coronavirus and whose financial situation is particularly difficult because they continue to suffer financial consequences after last year's adverse climatic events. The Commission found that the Polish scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €100,000 per company and (ii) the scheme will run until 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 measures 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.58105 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)

STATEMENTS

European Roma Holocaust Memorial Day: Statement by President von der Leyen, Vice-President Jourová and Commissioner Dalli

Ahead of the Roma Holocaust Memorial Day which is on Sunday, 2 August, President von der Leyen, Vice-President Jourová, and Commissioner Dalli issued a statement, in which they said:“Today, we pay tribute to the hundreds of thousands of Roma victims of the Holocaust.We consider it a moral duty to acknowledge and remember all those who suffered under the Nazi regime: among those people were the Roma. Remembering their persecution reminds us of the need to tackle the challenges they still face today and which are too often overlooked.Europe has a duty to protect its minorities from racism and discrimination.We must replace anti-gypsyism with openness and acceptance, hate speech and hate crime with tolerance and respect for human dignity, and bullying with education about the Holocaust.Above all, we must promote diversity as a wonderful gift that makes Europe strong and resilient.”You will find the full statement online. (For more information: Adalbert Jahnz - Tel.: +32 229 53156; Guillaume Mercier - Tel.:+32 229 80564; Charles Manoury – Tel: +32 229 13391)

ANNOUNCEMENTS

President von der Leyen receives letters of credence of Heads of Mission

Yesterday, 30 July, the President of the European Commission, Ursula von der Leyen, received letters of credence of 15 Heads of Mission to the EU. She received the letters of credence of H.E. Ambassador Esther Munalula Nkandu, Republic of Zambia; H.E. Ambassador Phoukhong Sisoulath, Lao People's Democratic Republic; H.E. Ambassador Patricio Torres, Republic of Chile; H.E. Ambassador Yavel Mireya Francis Lanuza, Republic of Panama; H.E. Ambassador Daniela Morari, Republic of Moldova; H.E. Ambassador Yoon Soongu, Republic of Korea; H.E. Ambassador Hugo Nelson Ortiz Dubon, Republic of El Salvador; H.E. Ambassador Sadiq Humadi Ibrahim Al-Rikabi, Republic of Iraq; H.E. Ambassador Tchary Atayev, Turkmenistan; H.E. Ambassador Pablo Ariel Grinspun, Argentine Republic; H.E. Ambassador Gholamhossein Dehghani, Islamic Republic of Iran; H.E. Ambassador Ide Alhassane, Republic of Niger; H.E. Ambassador Santosh Jha, Republic of India; H.E. Ambassador Kristján Andri Stefansson, Iceland; H.E. Ambassador Jestas Abuok Nyamanga, United Republic of Tanzania. Photos of the ceremony are available on the audiovisual portal. (For more information: Dana Spinant – Tel.: +32 2 299 01 50)

Eurostat: communiqués de presse