This regular alert covers key regulatory EU developments related to the COVID-19 situation. It does not purport to provide an exhaustive overview of developments and contains no analysis or opinion.

LATEST KEY DEVELOPMENTS

Competition & State Aid

  • European Commission publishes Annual Single Market Report 2022
  • European Commission approves new and amended Member State measures to support the economy

Trade / Export Controls

  • European Commission publishes Annual Single Market Report 2022
  • COVID-19 Global Action Meeting gathers EU, US, and other partner countries
  • Report on EU Exit: UK Border post transition

Medicines and Medical Devices

  • EMA publishes new vaccine safety update
  • Medical Device Coordination Group publishes revised Guidance on performance evaluation of SARS-CoV-2 in vitro diagnostic medical devices
  • European Commission publishes call for best practices on non-communicable diseases
  • HERA launches first Work Plan

Cybersecurity, Privacy & Data Protection

  • European Commission publishes proposed Data Act
  • Council updates temporary restriction on non-essential travel into the EU and possible lifting of such restriction

COMPETITION & STATE AID

State Aid  
European Commission publishes Annual Single Market Report 2022 (see here)

On 22 February 2022, the European Commission published the Annual Single Market Report 2022, which sets out, in particular, latest developments in industrial ecosystems, the envisaged way forward for recovery from the pandemic, recent challenges in global supply chains, the economic situation of SMEs, and pursuit of the green and digital transition.

On the economic situation of SMEs, the Report notes that SMEs particularly suffered from the COVID-19 crisis, with lockdowns forcing many small businesses to close temporarily.

While the number of bankruptcies of SMEs remains at a lower level than precrisis (reflecting, in particular, the impact of various economic support programs and forbearance by lenders and regulators), the Report cautions that overall figures mask significant differences by sector. The situation for the accommodation and food services sector is significantly worse than before the pandemic.

Thus, the Report indicates the Commission's view that when phasing out support measures, it is essential to seek to avoid a cliff-edge for many SMEs. In this context, the Commission decided to prolong the State Aid Temporary Framework until 30 June 2022 and introduced new tools available to Member States to seek to create direct incentives for forward-looking private investment (until 31 December 2022) and solvency support measures (until 31 December 2023) (see also Jones Day COVID-19 Update No. 68 of 22 November 2021).

On the green and digital transition, the Report refers to the ambitions of the Updated Industrial Strategy of May 2021, which emphasized the need to address strategic dependencies that lead to vulnerabilities of the EU economy (see also Jones Day COVID-19 Update No. 47 of 12 May 2021). In line with these aims, EU actions deployed include:

  • Considering scope for coordinated investment by Member States and industry in the form of new IPCEIs (Important Projects of Common European Interest). The Report notes that certain Member States and companies have jointly expressed interest to engage in additional IPCEIs, such as next-generation Cloud and Edge Infrastructure and Services, hydrogen, health and a second IPCEI on microelectronics. The Commission is monitoring several of these project plans and will assess if and when notified to the Commission under applicable State aid rules.
  • Reviewing State aid rules for IPCEIs. In this respect, the revised IPCEI Communication was adopted in November 2021. According to the Commission, the Communication reflects the EU's new key policy objectives of promoting green and digital transitions, as well as strengthening the EU's "open strategic autonomy" (i.e., increasing reliance on its own resources in key strategic areas, but cooperating with partners where necessary) (see also Jones Day Commentary, EU Revises State Aid Rules for Important Projects of Common European Interest, February 2022).

The Report also provided an illustration of investment volumes for nine industrial areas (i.e. raw materials; batteries; solar PV; hydrogen; steel; cement; chemicals; clouds services; and cybersecurity) that are considered to play an enabling role for successful green, digital and resilient transitions. The total cumulative investment volume for the nine selected areas is estimated at some ?405 billion for the period up to 2030, or ?45 billion annually. The Commission based these figures on data collected and/or estimated through consultations with relevant public stakeholders, industrial associations and alliances.

For further details on the Annual Single Market Report 2022, please see below Section on Trade / Export Controls.


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