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EU approves Italian aid scheme to support economy in coronavirus outbreak

UN refugee agency halts work at Libya facility

The European Commission says it has approved an Italian aid scheme to support the economy in the context of the coronavirus outbreak.

The scheme, according to the EU, was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

It said the total budget of the measure communicated by the Italian authorities is of up to €200 billion.

Margrethe Vestager the Executive Vice-President, in charge of competition policy, said: “The Italian guarantee scheme with a budget of up to 200 billion euro will enable public guarantees on new loans and on refinancing of existing loansfor all businesses, including large companies.

Together with the other Italian scheme to support self-employed workers, SMEs and mid-caps affected in the context of the coronavirus outbreak, the scheme will help companies cover their immediate working capital and investment needs in these difficult times.

We continue working closely with Member States to ensure that national support measures can help mitigate the effects of the coronavirus outbreak”

The Italian support measure
Italy notified to the Commission under the Temporary Framework a guarantee scheme for new working capital and investment loans granted by banks, to support companies affected by the coronavirus outbreak. The aid will be granted by State-owned SACE, through financial institutions, to companies affected by the coronavirus outbreak. The aim of the scheme is to limit the risks associated with issuing loans to companies that are severely affected by the economic impact of the coronavirus, helping businesses to cover their immediate working capital or investment needs, in order to ensure the continuation of their activities. The Italian authorities have communicated a total budget of up to €200 billion for the scheme.

The Commission found that the measure is in line with the conditions set out in the Temporary Framework. In particular, (i) the underlying loan amount per company is limited to what is needed to cover its liquidity needs for the near future, (ii) the guarantees will only be provided until the end of this year, (iii) the guarantees are limited to a maximum of six years, and (iv) guarantee fee premiums are in line with the levels foreseen by the Temporary Framework.

READ  First comprehensive global analysis of COVID-19 travel restrictions, border closures weighs future impacts on mobility

Global Forum on Migration and Development

The measure also includes safeguards to ensure that the aid is effectively channelled by the financial institutions to the beneficiaries in need.

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.

Background
The Commission has adopted a Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the coronavirus outbreak.

The Temporary Framework, as amended on 3 April 2020, provides for the following types of aid, which can be granted by Member States:

(i) Direct grants, equity injections, selective tax advantages and advance payments of up to €100,000 to a company active in the primary agricultural sector, €120,000 to a company active in the fishery and aquaculture sector and €800,000 to a company active in all other sectors to address its urgent liquidity needs.

Member States can also give, up to the nominal value of €800,000 per company zero-interest loans or guarantees on loans covering 100% of the risk, except in the primary agriculture sector and in the fishery and aquaculture sector, where the limits of €100,000€ and €120,000 per company respectively, apply.

(ii) State guarantees for loans taken by companies to ensure banks keep providing loans to the customers who need them. These state guarantees can cover up to 90% of risk on loans to help businesses cover immediate working capital and investment needs.

(iii) Subsidised public loans to companies with favourable interest rates to companies. These loans can help businesses cover immediate working capital and investment needs.

(iv) Safeguards for banks that channel State aid to the real economy that such aid is considered as direct aid to the banks’ customers, not to the banks themselves, and gives guidance on how to ensure minimal distortion of competition between banks.

READ  Include migrants in vaccine plans, IOM urges at Regional Health Conference

(v) Public short-term export credit insurance for all countries, without the need for the Member State in question to demonstrate that the respective country is temporarily “non-marketable”.

(vi) Support for coronavirus related research and development (R&D) to address the current health crisis in the form of direct grants, repayable advances or tax advantages. A bonus may be granted for cross-border cooperation projects between Member States.

(vii) Support for the construction and upscaling of testing facilities to develop and test products (including vaccines, ventilators and protective clothing) useful to tackle the coronavirus outbreak, up to first industrial deployment.

This can take the form of direct grants, tax advantages, repayable advances and no-loss guarantees.

Companies may benefit from a bonus when their investment is supported by more than one Member State and when the investment is concluded within two months after the granting of the aid.

(viii) Support for the production of products relevant to tackle the coronavirus outbreak in the form of direct grants, tax advantages, repayable advances and no-loss guarantees.

Companies may benefit from a bonus when their investment is supported by more than one Member State and when the investment is concluded within two months after the granting of the aid.

(ix) Targeted support in the form of deferral of tax payments and/or suspensions of social security contributions for those sectors, regions or for types of companies that are hit the hardest by the outbreak.

(x) Targeted support in the form of wage subsidies for employees for those companies in sectors or regions that have suffered most from the coronavirus outbreak, and would otherwise have had to lay off personnel.

The Temporary Framework enables Member States to combine all support measures with each other, except for loans and guarantees for the same loan and exceeding the thresholds foreseen by the Temporary Framework.

It also enables Member States to combine all support measures granted under the Temporary Framework with existing possibilities to grant de minimis to a company of up to € 25,000 over three fiscal years for companies active in the primary agricultural sector, €30,000 over three fiscal years for companies active in the fishery and aquaculture sector and €200,000 over three fiscal years for companies active in all other sectors.

READ  Eight African migrants drown,  several others injured off the Horn of Africa 

At the same time, Member States have to commit to avoid undue cumulation of support measures for the same companies to limit support to meet their actual needs.

Furthermore, the Temporary Framework complements the many other possibilities already available to Member States to mitigate the socio-economic impact of the coronavirus outbreak, in line with EU State aid rules.

On 13 March 2020, the Commission adopted a Communication on a Coordinated economic response to the COVID-19 outbreak setting out these possibilities. For example, Member States can make generally applicable changes in favour of businesses (e.g. deferring taxes, or subsidising short-time work across all sectors), which fall outside State Aid rules.

They can also grant compensation to companies for damage suffered due to and directly caused by the coronavirus outbreak.
The Temporary Framework will be in place until the end of December 2020. With a view to ensuring legal certainty, the Commission will assess before that date if it needs to be extended.

The non-confidential version of the decision will be made available under the case number SA.56963 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

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Netherlands, IOM launch Global Migration Initiative to protect people on the move

COMPASS will provide vulnerable migrants including victims of trafficking and unaccompanied or separated children access to a broad range of protection and assistance services.

 The International Organization for Migration (IOM) and the Ministry of Foreign Affairs of the Netherlands launched the Cooperation on Migration and Partnerships for Sustainable Solutions initiative (COMPASS) at the beginning of 2021. COMPASS is a global initiative, in partnership with 12 countries, designed to protect people on the move, combat human trafficking and smuggling, and support dignified return while promoting sustainable reintegration.

The initiative is centred on a whole-of-society approach which, in addition to assisting individuals, will work across all levels – households, communities, and the wider communities – and encompasses the following partner countries: Afghanistan, Chad, Egypt, Ethiopia, Iraq, Lebanon, Libya, Mali, Morocco, Niger, Nigeria, and Tunisia.

“We want to mobilize families, peers and communities to encourage informed and safe migration decisions, protect migrants, and help those returning home reintegrate successfully,” said Monica Goracci, Director of the Department of Migration Management at IOM.

READ  Eight African migrants drown,  several others injured off the Horn of Africa 

“One key component is also undermining the trafficking and smuggling business models through the promotion of safe alternatives and information sharing to reduce the risks of exploitation and abuse by these criminal networks.” Vulnerable migrants, including victims of trafficking and unaccompanied or separated children, will have access to a broad range of protection and assistance services such as mental health and psychosocial support, while migrants in transit who wish to return home will be supported with dignified return and reintegration.

Community level interventions will focus on improving community-led efforts to address trafficking in persons and smuggling of migrants, and support sustainable reintegration of returning migrants. COMPASS will work with national and local governments to enable a conducive environment for migrant protection, migration management and international cooperation on these issues.

“The Ministry of Foreign Affairs is pleased to launch the COMPASS programme in cooperation with IOM, an important and longstanding partner on migration cooperation,” said Marriët Schuurman, Director for Stability and Humanitarian Aid of the Ministry of Foreign Affairs of the Netherlands.

READ  114 Ivorians, Guineans, Liberian migrants return home from Algeria amid COVID-19 with IOM assistance

“The programme is a part of the Dutch comprehensive approach to migration with activities that contribute to protection and decreasing irregular migration. Research and data gathering are also important components, and we hope that the insights that will be gained under COMPASS will contribute to broader knowledge sharing on migration and better-informed migration policies.”, added Schuurman. The initiative has a strong learning component, designed to increase knowledge and the uptake of lessons learned, both within the programme and beyond its parameters. COMPASS will actively contribute to global knowledge that supports countries in managing migration flows and protecting vulnerable migrants such as victims of trafficking. The implementation of COMPASS is set to start soon.

The Ministry of Foreign Affairs of the Netherlands, as the donor to the COMPASS initiative, pledges its active support to partner countries to improve migration cooperation mechanisms within its long-term vision. 

IOM, the leading inter-governmental organization in the field of migration, contributes its expertise as the technical implementation partner to the initiative. IOM works closely with governmental, intergovernmental and non-governmental partners in its dedication to promoting humane and orderly migration for the benefit of all. 

READ  Illegal border crossings at Europe’s external borders drop

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A child, 40 others drown in shipwreck off Tunisia

Photo: Mediterranean Sea

UNHCR, the UN Refugee Agency, and the International Organization for Migration (IOM) are deeply saddened by reports of a shipwreck off the coast of Sidi Mansour, in southeast Tunisia, yesterday evening. The bodies of 41 people, including at least one child, have so far been retrieved.

According to reports from local UNHCR and IOM teams, three survivors were rescued by the Tunisian National Coast Guard. The search effort was still underway on Friday. Based on initial information, all those who perished were from Sub-Saharan Africa.

This tragic loss of life underscores once again the need to enhance and expand State-led search and rescue operations across the Central Mediterranean, where some 290 people have lost their lives so far this year. Solidarity across the region and support to national authorities in their efforts to prevent loss of life and prosecute smugglers and traffickers should be a priority.

Prior to yesterday’s incident, 39 refugees and migrants had perished off the coast near the Tunisian city of Sfax in early March. So far this year, sea departures from Tunisia to Europe have more than tripled compared to the same period in 2020.

READ  Include migrants in vaccine plans, IOM urges at Regional Health Conference

UNHCR and IOM continue to monitor developments closely. They continue to stand ready to work with the national authorities to assist and support the survivors, and the family members of those lost.

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Ethiopian migrants return home from Yemen with IOM support in wake of tragic boat sinking

Yemen: Stranded Ethiopian migrants prepare to board an IOM-facilitated flight from Aden, Yemen, to fly home to Addis Ababa. Photo: IOM/Majed Mohammed 2021

One hundred and sixty Ethiopian migrants have returned home safely from Yemen today with the assistance of the International Organization for Migration (IOM), just one day after a perilous journey across the Gulf of Aden claimed the lives of dozens of people, including at least 16 children.

More than 32,000 migrants, predominantly from Ethiopia, remain stranded across Yemen in dire, often deadly, circumstances.

“The conditions of migrants stranded in Yemen has become so tragic that many feel they have no option but to rely on smugglers to return home,” said Jeffrey Labovitz, IOM’s Director for Operations and Emergencies.

At least 42 people returning from Yemen are believed to have died on Monday when their vessel sank off the coast of Djibouti. Last month, at least 20 people had also drowned on the same route according to survivors. IOM believes that, since May 2020, over 11,000 migrants have returned to the Horn of Africa on dangerous boat journeys, aided by unscrupulous smugglers.

READ  COVID-19: Thousands of irregular migrants face severe humanitarian challenge - Group

“Our Voluntary Humanitarian Return (VHR) programme provides a lifeline for those stranded in a country now experiencing its seventh year of conflict and crisis. We call on all governments along the route to come together and support our efforts to allow migrants safe and dignified opportunities to travel home,” added Labovitz.

COVID-19 has had a major impact on global migration. The route from the Horn of Africa to Gulf countries has been particularly affected. Tens of thousands of migrants, hoping to work in the Kingdom of Saudi Arabia (KSA), now find themselves unable to complete their journeys, stranded across Djibouti, Somalia and Yemen.

While the pandemic has also caused the number of migrants arriving to Yemen to decrease from 138,000 in 2019 to just over 37,500 in 2020, the risks they face continue to rise. Many of these migrants are stranded in precarious situations, sleeping rough without shelter or access to services. Many others are in detention or being held by smugglers.

READ  Inquests will be opened into deaths of Vietnamese migrants

“We cannot find jobs or food here; Yemen is a problem for us,” said Gamal, a 22-year-old migrant returning on the VHR flight. “I used to sleep in the street on cardboard. I could only eat because of the charity people would give me and sometimes we were given leftovers from restaurants. I never had much to eat.”

Since October 2020, in Aden alone, IOM has registered over 6,000 migrants who need support to safely return home. Today’s flight to Addis Ababa was the second transporting an initial group of 1,100 Ethiopians who have been approved for VHR to Ethiopia. Thousands of other undocumented migrants are waiting for their nationality to be verified and travel documents to be provided.

Prior to departure on the VHR flight, IOM carried out medical and protection screenings to ensure that returnees are fit to travel and are voluntarily consenting to return. Those with special needs are identified and receive specialized counselling and support.

In Ethiopia, IOM supports government-run COVID-19 quarantine facilities to accommodate the returnees on arrival and provides cash assistance, essential items and onward transportation to their homes. The Organization also supports family tracing for unaccompanied migrant children.

READ  First comprehensive global analysis of COVID-19 travel restrictions, border closures weighs future impacts on mobility

Across the Horn of Africa and Yemen, IOM provides life-saving support to migrants through health care, food, water and other vital assistance.

Today’s flight was funded by the US State Department’s Bureau for Population, Refugees and Migration (PRM). Post-arrival assistance in Addis Ababa is supported by EU Humanitarian Aid and PRM.

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