Subject: Financial rescue programmes for tourism micro-enterprises and individuals
Under the Temporary Framework to support the economy in the context of the coronavirus outbreak, the Commission approved a number of State-aid schemes. Some Member States have announced financial rescue programmes to support big tourism players and, in the best cases, small and medium-sized enterprises (SMEs). However, small businesses (such as micro-enterprises) and individuals (such as entrepreneurs and those self-employed working in the tourism sector, in particular in the short-term rental sector) are suffering extreme losses as a result of the lockdown to control the COVID-19 pandemic. A study published by Oxfam on 9 April 2020 has warned that the economic crisis caused by coronavirus could push half a billion people into poverty unless ‘urgent and dramatic action is taken’.
1. How will the Commission make sure that micro-enterprises and individuals in the tourism sector are not forgotten?
2. Can it encourage the Member States to create financial rescue programmes for the most vulnerable entities (i.e. micro-enterprises and individuals – inlcuding the self-employed and entrepreneurs)?
Answer given by Executive Vice-President Vestager on behalf of the European Commission (27 July 2020)
1. The Commission Communication of May 2020 entitled ‘Tourism and transport in 2020 and beyond’ takes stock, among other things, of the instruments addressing the liquidity crunch in tourism in particular for small and medium-sized enterprises (SMEs), and sets out various initiatives. Apart from the state aid Temporary Framework, other specific instruments exist to meet the needs of SMEs, including micro-enterprises and individuals active in tourism. In particular, EUR 1 billion was made available by the Commission as a guarantee for the European Investment Fund which will leverage a loan guarantee of EUR 8 billion to help 100 000 SMEs, including in tourism. The Commission will also encourage Member States and regions most impacted by the downturn in tourism to use the possibilities offered by cohesion policy under the Coronavirus Response Investment Initiative and REACT-EU to support SMEs and workers in the tourism sector as part of the ongoing reprogramming of cohesion funds. In addition, the Commission will work with Member States to promote systems in which consumers buy ‘patronage’ vouchers from small suppliers in the tourism sector closed for business due to the coronavirus crisis that can be later exchanged for services once businesses reopen.
2. While it is for Member States to decide to put into place support schemes at national level, the new instrument for temporary support to mitigate unemployment risks in an emergency (SURE) (1) can provide financial assistance for the financing of measures supporting the income of workers during a period of reduction in business activities, including the self-employed. The Commission stands ready to work with Member States to do so for instance to promote the patronage voucher system or by providing assistance and advice to Member States on state aid policy issues arising when designing support measures. In this regard, the Commission is treating all possible coronavirus related support measures by Member States as a matter of priority.
⋅1∙ Council Regulation (EU) 2020/672 of 19 May 2020. | | ( | | )