COVID-19: The EU Responds
The European Union has faced various tests in recent years. COVID-19 is testing the EU's responses in both new and well-tried ways. It is useful to take an overview of some of the EU's responses:
State Aid
- EU Response: The EU has adopted a Temporary Framework to have necessary and appropriate State aid cleared as quickly as possible
Relevance for Business: Businesses in receipt of State aid need to know that the State aid is lawful aid. Otherwise they may have to repay the aid to the Member State.
EU Creates Medical Stockpile – the "rescEU stockpile"
- EU Response: European Commission has created a strategic rescEU stockpile of medical equipment such as ventilators and protective masks to help EU countries in the context of the Coronavirus pandemic
Relevance for Business: Businesses supplying medical goods should monitor this development carefully because the EU has not only created this stockpile but has also imposed some pre-clearance rules in regard to certain supplies to the sector (e.g., personal protective equipment).
Green Lanes to speed up trade
- EU Response: Commission presents practical guidance to ensure continuous flow of goods across EU via green lanes
Relevance for Business: Businesses should check whether their goods or the goods of their suppliers are availing of these green lanes to expedite delivery.
Critical European assets and technology in current crisis – FDI Screening
- EU Response: The EU has published Guidelines to protect critical European assets and technology in the current crisis
Information links here and here.
Relevance for Business: These guidelines involve an EU-wide approach to foreign direct investment screening, in a time of public health crisis and related economic vulnerability. The aim is to preserve EU companies and critical assets, notably in areas such as health, medical research, biotechnology and infrastructures that are essential for our security and public order, without undermining the EU's general openness to foreign investment.
Airport Slots
- EU Response: Regulation (EU) 2020/459 of the European Parliament and of the Council of 30 March 2020 amending Council Regulation (EEC) No 95/93 on common rules for the allocation of slots at Community airports.
Relevance for Business: Airports and airlines need to study this measure carefully because it changes the use or lose rules on airport slots.
Coronavirus Response Investment Initiative
- EU Response: Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020 amending Regulations (EU) No 1301/2013, (EU) No 1303/2013 and (EU) No 508/2014 as regards specific measures to mobilise investments in the healthcare systems of Member States and in other sectors of their economies in response to the COVID-19 outbreak (Coronavirus Response Investment Initiative).
Relevance for Business: This is important for everyone in the healthcare sector and needs careful study.
International Movement of Critical Workers
- EU Response: The EU has published guidelines to ensure the free movement of critical workers.
Relevance for Business: If businesses have cross-border workers then it is useful to examine these guidelines which cover not just health workers but others as well (e.g., in agriculture).
Brexit
- EU Response: The EU has not formally responded but various parties in the EU are suggesting that the 31 December 2020 deadline for the new agreement be extended. This will require the UK to request an extension (the EU may not extend it unilaterally).
Withdrawal Agreement
Relevance for Business: If businesses which are affected by Brexit need more time to prepare and want as considered an agreement as possible then they should engage with representatives of the UK Government. Alternatively, businesses may believe that there is no need for an extension and let matters take their course.
General Information on the EU response
- EU Response: The European Commission has prepared useful guidance.
Relevance for Business: Need to monitor the information on an on-going basis. Worth checking the EU website and also ALG's COVID-19 Hub which has a dedicated EU, Competition and Procurement website.
For more information on this topic please contact any member of A&L Goodbody's EU, Competition & Procurement team.
Date published: 1 April 2020