Daily News 23 / 12 / 2020

Commission adopts Recommendation on EU coordinated approach to travel and transport in response to new variant of coronavirus in the UK

Following the rapid increase of COVID-19 cases in parts of England, of which a large proportion belongs to a new variant of the virus, the Commission yesterday adopted a Recommendation on a coordinated approach to travel and transport measures. The recommendation builds on the Council Recommendation of 13 October on a coordinated approach to free movement in response to the COVID19-pandemic and several other guidance documents adopted by the Commission in the past months, in particular the Green Lanes Communication. While it is important to take swift temporary precautionary action to limit the further spread of the new strain of the virus and all non-essential travel to and from the UK should be discouraged, essential travel and transit of passengers should be facilitated. Flight and train bans should be discontinued given the need to ensure essential travel and avoid supply chain disruptions. Until the end of December, free movement rules still apply to the UK. This means that Member States should not in principle refuse the entry of persons travelling from the UK. After the end of the transition period, the UK will be subject to Council Recommendation on the temporary restriction on non-essential travel into the EU and the possible lifting of such restriction. A press release is available online. (For more information: Christian Wigand Tel.: +32 2 296 22 53; Stefan de Keersmaecker Tel.: +32 2 298 46 80)

L'UE mobilise 100 millions d'euros supplémentaires en réponse à l'explosion du port de Beyrouth au Liban

L'UE a adopté un programme d'aide supplémentaire de près de 100 millions d'euros pour aider le Liban à faire face aux conséquences de l'explosion du 4 août 2020 dans le port de Beyrouth et soutenir le redressement et les besoins de la population. Cette aide vient s'ajouter aux 70 millions d'euros mobilisés par l'UE immédiatement après la catastrophe. Le commissaire chargé de la politique de voisinage et de l'élargissement, Olivér Várhelyi, a commenté : « L'UE a agi rapidement pour soutenir la population touchée par l'explosion, qui fait toujours l'objet d'une enquête. La population de Beyrouth ressent toujours fortement les conséquences de l'explosion, qui s'ajoutent à la crise politique et socio-économique ainsi qu'à la pandémie du coronavirus. Ces importants fonds supplémentaires seront axés sur le rétablissement de la population, notamment l'accès aux services de base et à la protection sociale. Cet effort n'est pas fourni dans le vide. L'UE attend la formation rapide d'un gouvernement qui fera avancer les réformes essentielles qui doivent soutenir une reprise plus large. » Cette nouvelle enveloppe consistera en 34 millions d'euros provenant de l'instrument européen de voisinage qui seront réorientés pour améliorer la gouvernance, aider la société civile, renforcer les services de base et restaurer les infrastructures. Un nouveau financement de 64,5 millions d'euros supplémentaires sera acheminé à travers le Fonds fiduciaire régional de l'UE en réponse à la crise syrienne afin de soutenir les communautés réfugiées et libanaises les plus vulnérables touchées par l'explosion. De plus amples informations sont disponibles dans le communiqué de presse. Pour plus de détails, veuillez consulter les sites web consacrés au cadre de réforme, de redressement et de reconstruction (3RF) et à l'évaluation rapide des dommages et des besoins à Beyrouth. (Pour plus d'informations: Ana Pisonero – Tél.: +32 229 54320; Zoï Muletier – Tél.: +32 229 94306)  

Turkey: EU extends humanitarian support for refugees

The European Commission has extended two humanitarian flagship programmes in Turkey until early 2022 that help over 1.8 million refugees to meet their basic needs and over 700,000 children to continue their education. Commissioner for Crisis Management, Janez Lenarčič, said: “The humanitarian needs of refugees in Turkey persist and are even further  exacerbated by the coronavirus pandemic. The EU is fully committed to support those in need, as we have done for the past years. I am glad that our flagship programmes help thousands of refugee families to have some normality in their daily lives. This is a true demonstration of European solidarity.” The programmes that have been extended until early 2022 are: the Emergency Social Safety Net (ESSN) providing refugees with monthly cash assistance to meet their basic needs; the Conditional Cash Transfers for Education (CCTE), the largest EU-funded humanitarian education programme, providing support to families whose children attend school regularly. The full press release is available online. (For information: Balazs Ujvari - Tel.: +32 229 54578; Daniel Puglisi - Tel.: +32 229 69140)  

EU disburses €169 million of its COVID-19 support package for Morocco

Today, the European Union has disbursed €169 million of the COVID-19 support package for Morocco to help the authorities beef up the medical response to the coronavirus pandemic and put in place measures to mitigate its socio-economic impact. Neighbourhood and Enlargement commissioner, Olivér Várhelyi, commented: “Today's disbursement shows that the European Union stands by Morocco in its efforts to curb the pandemic, protect poor families and to get its economy back on its feet. Boosting growth and jobs to ensure livelihoods and keep businesses affected by the current crisis afloat is a crucial priority for both sides. Morocco is an important partner of the EU and we are in this fight together.” This latest payment is part of the EU's commitment to mobilise €450 million in support of Morocco in the context of the fight against coronavirus. Since early March, a previous €264 million has already been paid out to Morocco. This support has allowed Morocco to strengthen its response to the COVID-19 pandemic, both in health sector and to address the social and economic impact of the pandemic. More information is available in the press release. (For more information: Ana Pisonero – Tel.: +32 229 54320; Zoï Muletier – Tel.: +32 229 94306)

Team Europe: European Union and Inter-American Development Bank support Caribbean partner countries with €23 million

The EU's Caribbean Investment Facility (CIF) and the Inter-American Development Bank (IDB) have signed two agreements to support investments in primary health-care services in Jamaica and in sustainable energy in Barbados with a €23 million EU contribution. The first €10 million programme is part of the €38.5 billion Team Europe package mobilised by the EU, its Member States and EU financial institutions to support partner countries in tackling the COVID-19 crisis. It will help strengthen Jamaica's primary health services network, serving over one million people. In line with the Green Deal's call to invest in environmentally-friendly technologies, the EU's CIF will contribute €13 million to the Smart Fund II, a programme that will enhance Barbados' use of renewable energy and energy efficiency technologies across the board – in businesses, homes, schools and hospitals. The resulting energy and financial savings will boost the country's economy and the planet's sustainability. IDB is one of CIF's main investment partners in the Caribbean. They jointly manage 10 projects in a range of areas, from sustainable energy and health, to water, sanitation and agriculture. To date, total investment reaches €417 million, with almost €91 million from CIF. More information is available online. (For more information: Ana Pisonero – Tel.: +32 229 54320; Gesine Knolle – Tel.: +32 229 54323)  

State aid: Commission approves €650 million Polish support to LOT in context of coronavirus outbreak

The European Commission has approved two Polish measures, for a total of about €650 million (approximately PLN 2.9 billion), to support the airline LOT in the context of the coronavirus outbreak. The aid measures consists of a €400 million (approximately PLN 1.8 billion) subsidised loan and a capital injection of around €250 million (approximately PLN 1.1 billion). The measures were approved under the State aid Temporary Framework. The aid measures intend to restore LOT's equity and liquidity position, in order to ensure the continuation of the air transport services in Poland that LOT provides. Poland notified to the Commission, under the Temporary Framework, two measures in support of LOT: a €400 million (approximately PLN 1.8 billion) subsidised loan; and a capital injection of €250 million (approximately PLN 1.1 billion), through the subscription of newly issued shares taken up by Poland. The Commission found that the measures notified by Poland are in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework. The Commission concluded that the measures aim at restoring the balance sheet position and liquidity of LOT in the exceptional situation caused by the coronavirus pandemic. Since the recapitalization does not exceed €250 million, no further commitments to ensure effective competition are required. The measures are 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: “LOT plays a key role for the connectivity and economy of Poland. With these measures, Poland will contribute approximately €650 million to help the airline weather the current coronavirus crisis. The decision ensures that the State is sufficiently remunerated for the risk taxpayers assume, and that the support comes with strings attached, including a dividend ban as well as further measures to limit distortions of competition. We continue working in close contact and cooperation with Member States, to find workable solutions to mitigate the economic impact of the coronavirus outbreak, in line with EU rules.” The full press release is available online. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

State aid: Commission approves €30 million Lithuanian scheme to support companies affected by coronavirus outbreak

The European Commission has approved a €30 million Lithuanian scheme to support companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. Under the scheme, the support will take the form of loans of up to €100,000 with subsidised interest rates provided by Investicijų ir verslo garantijos (Invega), a Lithuanian promotional institution. The scheme will be open to companies active in all sectors of the economy (with the exception of the agricultural, fishery, aquaculture and financial sectors) that have experienced a decline in their turnover of more than 30% between 1 March and 31 October 2020 compared to the same period in 2019, due to the coronavirus outbreak and of the restrictive measures that the Lithuanian authorities had to implement to limit the spread of the coronavirus. The scheme aims at enhancing access to financing for the beneficiaries, thus helping them continue their activities during and after the outbreak. The Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the maturity of the loans is limited to six years, (ii) the amount of the loans corresponds to the level foreseen in the Temporary Framework, (iii) the loans relate to working capital needs, and (iv) and the public support will be granted no later than 30 June 2021. 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 of 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.60379 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; Maria Tsoni – Tel.: +32 229 90526)

State aid: Commission approves €197,000 Slovenian scheme to support farmers and fishermen affected by coronavirus outbreak

The European Commission has approved a €197,000 Slovenian scheme to support farmers and fishermen affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. Under the scheme, the public support will take the form of direct grants. The scheme will be open to micro companies (natural persons) active in agriculture, forestry, fishery and aquaculture, accommodation as well as food and beverages service activities sectors. The purpose of the scheme is to compensate farmers and fishermen who, due to the coronavirus, were unable to work on the farm or in the fishery enterprise and thus had to hire replacement labour for the duration of their incapacity for work. The measure is expected to benefit 260 companies. The Commission found that the 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 active in the primary production of agricultural products, €120,000 per company active in the fishery and aquaculture sector, and €800,000 per company active in all other sectors; and (ii) the scheme will run until 30 June 2021. 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.60270 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; Maria Tsoni – Tel.: +32 229 90526)

State aid: Commission approves €29.8 million Slovak aid scheme to compensate airport operators for damage suffered due to coronavirus outbreak and to support them in this context

The European Commission has approved, under EU State aid rules, a €29.8 million Slovak aid scheme to compensate airport operators for the damage suffered due to the coronavirus outbreak and to support them in the context of this outbreak. In order to limit the spread of the coronavirus, on 11 March 2020, the government of Slovakia implemented certain restrictive measures, including travel restrictions and a flight ban effective from 13 March 2020, which significantly limited flights operated in Slovakia until 30 June 2020. The aid is composed of three measures: (i) a damage compensation scheme; (ii) an aid scheme to support the airport operators up to a maximum of €800,000 per beneficiary; and (iii) an aid scheme to support the uncovered fixed costs of these companies. The aid will take the form of direct grants, for a total amount of €29.8 million. The damage compensation scheme will be open to operators of Slovak airports that handled more than 200,000 passengers in 2019. Under this measure, the Slovak authorities will compensate airports for the net losses suffered during the period between 13 March and 30 June 2020 as a result of the restrictive measures implemented in order to contain the spread of the virus. The Commission assessed this measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union and found that it will provide compensation for damage that is directly linked to the coronavirus outbreak. It also found that the measure is proportionate, as the compensation does not exceed what is necessary to make good the damage. With regards to the other two measures, the Commission found that they are in line with the conditions set out in the Temporary Framework. In particular, the aid will be granted no later than 30 June 2021 and will not exceed: (i) €800,000 per beneficiary under the second measure; and (ii) up to €3 million in case of support for the uncovered fixed costs of the airports. The Commission concluded that the measures are 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 three 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.59240 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 €130 million Italian scheme to compensate airlines for damage suffered due to coronavirus outbreak

The European Commission has approved, under EU State aid rule, a €130 million Italian scheme to compensate airlines for the damage suffered due to the coronavirus outbreak. Under the scheme, the Italian authorities will be able to compensate airlines for the losses directly caused by the coronavirus outbreak and the travel restrictions that Italy and other countries had to implement to limit the spread of the coronavirus between 1 March 2020 and 15 June 2020. The support will take the form of direct grants. The scheme includes a claw-back mechanism, whereby any possible public support in excess of the actual damage received by the beneficiaries will have to be paid back to the Italian State. The risk of the State aid exceeding the damage is therefore excluded. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors (in the form of schemes) for the damages directly caused by exceptional occurrences, such as the coronavirus outbreak. The Commission found that the Italian measure will compensate damage that is directly linked to the coronavirus outbreak. It also found that the measure is proportionate as the foreseen compensation does not exceed what is necessary to make good the damage. On this basis, the Commission approved the measure under EU State aid rules. More information will be available on the Commission's competition website, in the public case register under the case number SA.59029 once confidentiality issues have been resolved. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

State aid: Commission approves €150 million Lithuanian aid scheme to support companies affected by coronavirus outbreak

The European Commission has approved a €150 million Lithuanian aid scheme to support companies affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework. The scheme will be open companies active in all sectors of the economy (with the exception of the agricultural, fishery, aquaculture and financial sectors) provided they meet certain conditions (among others, that their turnover was under €50 million in 2019). The public support will take the form of direct grants. Companies that can demonstrate a turnover decline of at least 30% in the period between 1 October 2020 and 31 January 2021, compared to the same period of the previous year will be eligible to receive aid amounting to 25% of their employer payroll tax liability for the fiscal year 2019. Companies that are not able to prove a turnover decline in the period between 1 October 2019 and 31 January 2020, due to the lack of sufficient information, will be eligible to receive a flat amount of €500. The scheme aims at mitigating the liquidity shortages that the beneficiaries are facing due to the coronavirus outbreak and at helping the beneficiaries continue their activities during and after the outbreak. The Commission found that the Lithuanian measure is in line with the conditions set out in the Temporary Framework. In particular, (i) the aid will not exceed €800,000 per company; and (ii) will be granted until no later than 30 June 2021. 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 scheme under EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.60308 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 €20 million Czech schemes to support companies active in sports sector affected by coronavirus outbreak

The European Commission has approved two Czech schemes, with a total budget of €20 million, to support profit and non-profit sport entities participating in professional leagues, as well as companies organising sport events, affected by the coronavirus outbreak. The two schemes were approved under the State aid Temporary Framework. The public support will take the form of direct grants to companies that have experienced a significant decline in revenue due to the coronavirus outbreak and the measures imposed by the Government to limit the spread of the virus. Both schemes aim to address the liquidity needs of the beneficiaries and to help them to continue their activities during and after the outbreak. The Commission found that the schemes are in line with the conditions set out in the Temporary Framework. In particular, the support (i) will not exceed €800,000 per company; and (ii) will be granted until no later than 30 June 2021. The Commission concluded that the measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU. On this basis, the Commission approved the schemes 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 numbers SA.59340 and SA.59353 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)

Concentrations: La Commission autorise l'acquisition de l'usine de production de GFT Bordeaux par Magna International

La Commission européenne a autorisé, en vertu du règlement européen sur les concentrations, l'acquisition de l'usine de production de GFT Bordeaux (« GFT Bordeaux »), située en France par Magna International Inc. (« MAGNA »), basée au Canada. GFT Bordeaux fabrique et vend principalement des transmissions manuelles pour les véhicules légers de marque Ford en Europe. Avant l'opération, GFT Bordeaux était contrôlée conjointement par MAGNA et Ford Motor Company, basée aux États-Unis. MAGNA fabrique et fournit des systèmes automobiles, des assemblages, des modules et des composants pour les voitures particulières et les véhicules utilitaires légers. La Commission a conclu que le projet d'acquisition ne soulèverait pas de problèmes de concurrence, car MAGNA contrôlait déjà conjointement GFT Bordeaux et le passage au contrôle exclusif n'entraînerait aucune modification significative de la concurrence préexistante. L'opération a été examinée dans le cadre de la procédure simplifiée d'examen des concentrations. De plus amples informations sont disponibles sur le site internet de la Commission consacré à la concurrence, dans le registre public des affaires, sous le numéro M.9983. (Pour plus d'informations: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

Mergers: Commission clears creation of Gjirafa Tech by Rockaway, CMI and Mr Cahani

The European Commission has approved, under the EU Merger Regulation, the acquisition of joint control over a newly created joint venture called Gjirafa Tech by Czech Media Invest a.s. (‘CMI'), Rockaway Capital SE (‘Rockaway'), all of Czechia and Mr. Mergim Cahani. Gjirafa Tech will be active in the sale of software packages and other related services on a software-as-a-service (“SaaS”) basis mainly in Czechia. CMI is the ultimate parent company of a private investment group focusing on the acquisition and management of media assets in Central and Western Europe. Rockaway is the parent company of a business group active in the area of e-commerce, e-travel, media, book publishing and venture capital. Mr. Cahani is a natural person. The Commission concluded that the proposed acquisition would raise no competition concerns given the companies' moderate combined market position resulting from the proposed transaction and the fact that Gjirafa Tech has negligible actual or foreseen activities within the European Economic Area. 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.9848. (For more information: Arianna Podesta – Tel. +32 229 87024; Giulia Astuti – Tel.: +32 229 55344)

Eurostat: communiqués de presse

Europe Direct Contact Centre: Brexit helpline for citizens

As we are approaching the end of the transition period on 1 January 2021, the Europe Direct Contact Centre (EDCC) – the EU's single phone number for citizens – will remain at the disposal of citizens, businesses and stakeholders to answer Brexit-related questions in all 24 official languages. Questions related to the UK will be treated as a matter of priority. This is part and parcel of the EU's overall readiness for the end of the transition period. The Contact Centre is available via free phone from all Member States and the United Kingdom (00 800 6 7 8 9 10 11) and by webform. For more information about the EDCC, see facts and figures, 2019 Annual Activity Report and audiovisual material).