Measures to support the economy
REACT-EU – Euro 642 million to support economic recovery and digital and green transition in Belgium, Czech Republic, Poland and Romania – With the allocation of Euro 642 million made available through the European Territorial Recovery and Cohesion Policy Assistance (‘REACT-EU‘)[1], the regions of Belgium, Czech Republic, Poland and Romania will be able to further support their economic recovery and digital and green transition. In Belgium, the Brussels region will receive an additional EUR 6 million to support small and medium-sized enterprises (SMEs) in the sectors most affected by the coronavirus pandemic, such as catering, healthcare and construction. In Poland, the Łódzkie region will receive EUR 26 million to support SMEs, the health sector and renewable energy. In addition, the ‘Digital Poland’ programme will receive EUR 81 million for projects developing innovative IT tools for public services and the general digitisation of local public administration. In Romania, EUR 216 million will be used to equip public hospitals with specific medical and protective equipment and to improve sanitary conditions in schools in order to provide better protection for pupils and teachers from the risks of coronavirus infection.
European Commission launches Euro 3.2 billion investment package to promote sustainable connectivity in the Western Balkans – On 25.02.2022, the Commission unveiled a substantial Euro 3.2 billion investment package to support 21 transport, digital, climate and energy connectivity projects in the Western Balkans. This is the first major package of projects under the ambitious EU economic and investment plan for the Western Balkans, which the Commission adopted in October 2020. The projects are intended to bring tangible benefits to the region’s partners. Over the next few years, the Economic and Investment Plan is expected to mobilise up to EUR 30 billion in investments, in the form of a combination of grants, preferential loans and guarantees. The plan will help bridge the development gap between the EU and the region, and support post-pandemic economic recovery. The plan will also help realise the EU’s broader Global Gateway strategy, launched in December 2021.
Commission publishes enhanced surveillance report for Greece – On 24.02.2022, the Commission published the thirteenth enhanced surveillance report [2] for Greece. The report is prepared in the context of the enhanced surveillance framework that serves to ensure continued support for the implementation of Greece’s reform commitments following the successful completion of the financial assistance programme in 2018. The report concludes that Greece has taken the necessary actions to achieve its specific commitments, despite the continuing difficult circumstances due to the pandemic.
State aid: the Commission authorises a French scheme worth EUR 170 million – On 24.02.2022, the Commission authorised a French aid scheme to cover the social costs of small and medium-sized agricultural enterprises (‘SMEs’) whose production was affected by the frost episode from 4 to 14 April 2021. The scheme, worth a total of EUR 170 million, takes the form of tax benefits. The scheme will be open to SMEs active in primary agricultural production, more specifically in the fields of field crops, perennial crops, mixed farming, viticulture, fruit growing, horticulture and beekeeping. The scheme applies in addition to payments received from insurance companies, two existing schemes relating to the Agricultural Disaster Compensation Scheme (AS.61993) and the Additional Compensation Scheme for Farmers Insured against Climate Risks (AS.64422), approved on 17 February and 25 November 2021 respectively, and other schemes established locally. The Commission assessed the scheme under the EU state aid rules, in particular the guidelines on state aid in agriculture and forestry and rural areas. The examination revealed that the magnitude of the negative economic impact of the April 2021 freezes on agricultural SMEs is such that the coverage of the social contributions owed by these enterprises in the eligible ceilings is justified.
Global action against Covid-19
NextGenerationEU: Commission approves extension of two Spanish schemes to support innovative projects in the forestry sector and rural areas – On 24.02.2022, the Commission approved the extension of two existing Spanish schemes to support the forestry sector and rural areas. The total budget of the two measures has been increased by EUR 4 million. The additional funds will be made available through the Recovery and Resilience Facility (‘RRF’)[3], following the Commission’s positive assessment of the Spanish Recovery and Resilience Plan and its adoption by the Council. The aid will take the form of direct grants. The objective of the schemes is to support cooperation in forestry and rural areas between the operational groups of the European Innovation Partnership for Agricultural Productivity and Sustainability (‘EIP-AGRI’) and the implementation of innovative projects of general interest.
Travelling during the pandemic – On 22.02.2022, the Commission welcomed the adoption by the Council of an updated framework for travel to the EU, following a proposal made by the Commission late last year. The updates will further facilitate travel from outside the EU to the EU and will take into account the evolution of the pandemic, the increasing spread of vaccination worldwide and the administration of booster doses, as well as the recognition of an increasing number of certificates issued by non-EU countries as equivalent to the EU Covid digital certificate. According to the updated framework agreed upon on 22 February, Member States should now also re-open the vaccination to those who have been vaccinated with a vaccine that has completed the World Health Organisation (‘WHO’) emergency classification process.
European Covid digital certificate: recovery certificates can now also be issued on the basis of rapid antigenic tests – On 22.02.2022, the Commission adopted a delegated act in accordance with the Union Covid digital certificate for the issuing of recovery certificates [4] . From today, the new rules will allow Member States to issue certificates of recovery on the basis of a positive rapid antigenic test result. Previously, it was only possible to issue a certificate of recovery following a positive result of a molecular nucleic acid amplification test (‘NAAT’), such as RT-PCR. In order to ensure the accuracy and reliability of the certificate, the rapid test used must be on the common EU list of rapid tests for Covid-19 and be performed by health professionals or qualified personnel. Member States may issue these certificates retroactively, based on tests performed from 1 October 2021.
Vaccines against Covid-19
Disinformation about the coronavirus – On 22.02.2022, Commission Vice-President Jourová met with representatives of Facebook, Google, TikTok, Twitter and YouTube in view of the urgent need to address misinformation about Covid – 19 vaccines. The online platforms that signed the code of conduct on disinformation committed to dedicated reporting for the initial 6-month period, recently extended for another 6 months. Following the 10 June 2020 Joint Communication on Combating Covid-19 Disinformation, a monthly reporting programme was created to ensure accountability to the public of the efforts made by the platforms and relevant industry associations.
EU Council
Council extends measures for the rail transport sector – On 24.02.2022, the Council, taking into account that the Covid – 19 pandemic continues to affect the level of rail traffic, extended until 30 June 2022 the emergency measures put in place in October 2020 to mitigate the effects of the pandemic on the sector. The measures, in particular, offer Member States the possibility to reduce certain infrastructure charges on railway companies, while ensuring timely reimbursements to infrastructure providers. In addition, given the unpredictable evolution of the pandemic, it was decided to extend until 31 December 2023 the Commission’s powers to extend the measure if necessary by means of delegated acts for up to six months, on a case-by-case basis. Member States will continue to notify the Commission of all measures taken, and the Commission will in turn make this information public.
European Investment Bank (‘EIB’)
Portugal: EIB and Banco Montepio Group to support enterprises with EUR 414m
On 24.02.2022, the EIB and the Banco Montepio Group signed a new guarantee agreement aimed at supporting Portuguese SMEs, mid-caps (up to 3,000 employees) and large enterprises (more than 3,000 employees). To this end, the EIB will provide a guarantee of EUR 116.35m to the Banco Montepio Group, enabling the Portuguese bank to grant a total of EUR 179m in working capital and investment loans, to mobilise EUR 414m in support of Portuguese companies affected by the economic consequences of the Covid-19 pandemic. The agreement is supported by the European Guarantee Fund (‘EGF’)[5], part of the Euro 540 billion EU package of measures adopted in response to the economic impact caused by Covid – 19.
[1] REACT-EU is part of NextGenerationEU and provides EUR 50.6 billion of additional funding (in current prices) in 2021 and 2022 to the 2014-2020 cohesion policy programmes.
[2] Enhanced surveillance provides a comprehensive framework for monitoring economic developments and the pursuit of policies necessary to ensure a sustainable economic recovery. It allows for a regular assessment of recent economic and financial developments in Greece, as well as the monitoring of sovereign financing conditions and updates of the debt sustainability analysis. Economic developments and policies in Greece are monitored in the context of the European Semester for Economic Policy Coordination and under the enhanced surveillance framework pursuant to Articles 2 and 3 of Regulation (EU) No 472/2013.
[3] It enables the Commission to raise funds to help Member States implement reforms and investments that are in line with EU priorities and address the challenges identified in the country-specific recommendations under the European Semester of economic and social policy coordination. It makes available EUR 723.8 billion (current prices), of which EUR 385.8 billion in loans and EUR 338 billion in grants.
[4] This is a certificate stating that no more than 180 days have elapsed since the date of the first positive test result.
[5] The European Guarantee Fund (EGF) was created by the EIB Group with contributions from Portugal and other EU Member States to protect companies affected by the Covid-19 crisis.
Country
Belgium
