EU Response to the COVID-19 Pandemic

by Simion & Baciu Law Firm May 20, 2020

Website simionbaciu.ro

Democracy and fundamental rights are under threat in Hungary, say most MEPs, who urge the Commission and the Council to protect Hungarian citizens and rule of law. (https://www.europarl.europa.eu/news/en/press-room/20200512IPR78917/hungary-s-emergency-measures-meps-ask-eu-to-impose-sanctions-and-stop-payments)

On the 8th of May the Commission invited Schengen Member States and Schengen Associated States to extend the temporary restriction on non-essential travel to the EU for another 30 days, until 15 June. (https://ec.europa.eu/info/sites/info/files/assessment-application-temporary-restriction-travel_en.pdf )

On May 8 the Eurogroup (informal body where the ministers of the euro area member states discuss matters relating to their shared responsibilities related to the euro) agreed on the features and standardized terms of the Pandemic Crisis Support, available to all euro area Member States for amounts of 2% of the respective Member’s GDP as of end-2019, as a benchmark, to support domestic financing of direct and indirect healthcare, cure and prevention-related costs due to the COVID-19 crisis.. (https://www.consilium.europa.eu/en/press/press-releases/2020/05/08/eurogroup-statement-on-the-pandemic-crisis-support/)

The European Commission decided to postpone the entry into force of two EU taxation measures to take account of the difficulties that businesses and Member States are facing at the moment with the coronavirus crisis. Those include the VAT e-commerce package (postponed by 6 months, will apply as of 1 July 2021 instead of 1 January 2021) and to defer certain deadlines for filing and exchanging information under the Directive on Administrative Cooperation (DAC). (https://ec.europa.eu/taxation_customs/news/taxation-commission-proposes-postponement-taxation-rules-due-coronavirus-crisis_en)

The European Commission has approved, under EU State aid rules, Romanian plans to partially compensate energy-intensive companies for higher electricity prices resulting from indirect emission costs under the EU Emission Trading Scheme (ETS). (https://www.pubaffairsbruxelles.eu/state-aid-commission-approves-compensation-to-energy-intensive-companies-in-romania-for-indirect-emission-costs-eu-commission-press/)

The Commission published a communication on the 13th of May named "Tourism and transport in 2020 and beyond". It is composed of three guidelines and a recommendation to help EU countries gradually lift travel restrictions, allow businesses to reopen and ensure that people in Europe can benefit from a safe and relaxing summer after months of confinement while respecting necessary health precautions. (https://ec.europa.eu/commission/presscorner/detail/en/IP_20_854)

Emmanuel Macron and Angela Merkel on Monday proposed a € 500 billion plan for the EU's economic recovery, hit by the coronavirus crisis that has plunged the continent into a historic recession. (https://www.afp.com/en/news/3954/france-germany-chart-500-bn-euro-virus-rescue-european-lockdown-eases-doc-1rt32f6)

European insurers face increased risk exposures due to Covid-19, but market perceptions and imbalances remained at medium level. (https://www.eiopa.europa.eu/content/european-insurers-face-increased-risk-exposures-due-covid-19-market-perceptions-and_en)

ESMA sees potential decoupling of financial market performance and underlying economic activity. (https://www.esma.europa.eu/press-news/esma-news/esma-sees-potential-decoupling-financial-market-performance-and-underlying)

Short selling bans were terminated or not renewed in Austria, Belgium, France, Greece, Italy and Spain. (https://www.esma.europa.eu/press-news/esma-news/esma-%E2%80%93-non-renewal-and-termination-short-selling-bans-austrian-fma-belgian-fsma)

In a resolution on the post-2020 EU budget revision and economic recovery plans, MEPs demand a robust package, focused on citizens’ needs and building on the EU budget. This includes a €2 trillion recovery package to tackle COVID-19 fallout. (https://ec.europa.eu/commission/presscorner/detail/en/ip_20_772)

Brussels should ban Chinese investors from snapping up EU companies that are vulnerable to cheap buy-outs due to the economic fallout from COVID-19, said Manfred Weber, head of the European People’s Party group in the European Parliament. (https://www.politico.eu/article/manfred-weber-ban-chinese-buyouts-eu-firms-during-coronavirus-pandemic/)

European Central Bank President Christine Lagarde has called for a “swift, sizeable and symmetrical” spending package to counter the coronavirus crisis in the EU. Lagarde told an online forum Friday that a common European fiscal response was “desirable” to counter differences among countries in the depth of the pandemic’s fallout. (https://www.politico.eu/article/lagarde-urges-swift-sizeable-spending-to-bolster-economy/)

Belgium confirmed on May 13 that it will relax some lockdown measures, including a partial reopening of schools, amid encouraging numbers on COVID-19 infections and deaths. (https://www.politico.eu/article/coronavirus-belgium-schools-reopen-lockdown-rules-ease/)

EU statistics confirmed the eurozone economy's record contraction of 3.8 percent for the first three months of the year compared to the previous quarter. (https://ec.europa.eu/eurostat/documents/2995521/10294864/2-15052020-AP-EN.pdf/5a7ea909-e708-f3d3-8375-e2510298e1b8)

Apr 12, 2024

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