Coronavirus: damage to the floral and nursery sector. Calling on the Commission to set up a European Business Support Fund

Subject: Coronavirus: damage to the floral and nursery sector. Calling on the Commission to set up a European Business Support Fund

27 000 companies and 100 000 people work in the Italian floral and nursery sector, which generates a turnover of more than EUR 2.5 billion, in addition to that generated by businesses linked to it, including those involved in marketing. The restrictive measures introduced in Italy in March 2020 to counter the spread of Coronavirus are having a very severe impact on the entire floral and nursery sector, for which spring is the period in which the greatest amount of flowers, plants, seeds and fertilisers are produced and sold. According to initial estimates made by the relevant Italian trade associations, including the Confederazione italiana agricoltori (CIA) and Associazione Florovivaisti Italiani, the damage done to the floral and nursery sector has been in excess of EUR 1 billion. Indeed, it has been estimated that 60 % of the flowers and plants produced have already had to be destroyed. Moreover, in the Veneto region, according to Coldiretti, 1 500 companies have effectively had zero turnover. Given that, unless specific aid is granted, the entire Italian floral and nursery sector is at risk of collapse and that this will have very serious economic and employment repercussions on workers and their families, can the Commission answer the following questions:

1. Will it, as a matter of urgency, set up a European business support fund for companies in the floral and nursery sector, in order to help them deal with this major crisis due to the economic impact of Coronavirus?

2. Will it support the promotion of the Italian floral and nursery sector within the EU, by taking extraordinary measures?

Answer given by Mr Wojciechowski on behalf of the European Commission (2 July 2020)

A significant number of measures has already been adopted at EU level to help Member States stop the spread of the COVID-19 pandemic and mitigate its social and economic consequences and these can also help to address the crisis in the floral and nursery sector. Detailed information on them can be found in the link provided in the footnote. (1) Among them, the already adopted Coronavirus Response Investment Initiative (CRII) (2) and the Coronavirus Response Investment Initiative + (CRII+) (3) will direct EUR 54 billion from the EU budget to assist national healthcare systems, small and medium-sized enterprises (SMEs) and workers, among other COVID-19 response measures. The new instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE) (4), proposed by the Commission on 2 April 2020, will allow for support of up to EUR 100 billion in the form of loans to Member States. On 27 May 2020, the Commission presented its recovery plan ‘Next Generation EU’ and an amended proposal for the next multiannual financial framework to bring the EU economy back to a path of sustainable and inclusive growth.

The Commission has also adopted a Temporary Framework (5) setting out the possibilities Member States have under state aid rules to support the economy in the context of the COVID-19 outbreak.

The Commission has also adopted a set of exceptional measures (6) designed to support the agri-food sector including a derogation from competition rules under Article 222 of the CMO Regulation (7) that allows operators to adopt self-organisation market measures with a validity of six months in the flowers sectors.

Moreover, the floral and nursery sector remains eligible for the promotion schemes as well as under rural development programs if Member States make use of this possibility.

⋅1∙ https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response_en

⋅2∙ Regulation (EU) No 2020/460 of the European Parliament and of the Council (OJ L 99, 31.03.2020)

⋅3∙ Regulation (EU) No 2020/558 of the European Parliament and of the Council (OJ L 130, 24.04.2020)

⋅4∙ Council Regulation (EU) 2020/672 of 19 May 2020

⋅5∙ https://ec.europa.eu/competition/state_aid/what_is_new/covid_19.html

⋅6∙ https://ec.europa.eu/commission/presscorner/detail/en/ip_20_788

⋅7∙ Common market organisation Regulation (EU) No 1308/2013 (OJ L347, 17.12.2013, p. 347).