Author (Corporate) | European Commission: DG Economic and Financial Affairs |
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Series Details | COM (2020) 404 |
Publication Date | 29/05/2020 |
Content Type | Policy-making |
Summary: Legislative initiative published by the European Commission on 29 May 2020, proposing a number of amendments to Regulation (EU) 2015/1017 so to allow the creation of a Solvency Support Instrument (SSI), in light of the consequences of the COVID-19 (coronavirus) pandemic. Further information: Many companies across the European Union (EU) were affected by solvency difficulties because of the sanitary emergency, and those problems were likely to accentuate as restrictions on economic and social activities lasted in time. The difficulties could be long-lasting even beyond lockdown periods and deepen existing economic disparities between and within Member States. This proposal puts forward a temporary equity-based instrument, for companies with an otherwise viable business model but which are solvency constrained due to the pandemic. The purpose is to help them weather this period so that they are in a position to carry the recovery when the time comes. Another objective is to counter-balance the expected distortions in the Single Market, given the different capacity from Member States to support companies in need. Those objective are to be delivered by providing an EU guarantee to the European Investment Bank (EIB) under Regulation (EU) 2015/1017 (the EFSI Regulation). Solvency support is to form a third window under the European Fund for Strategic Investments (EFSI) - a solvency support window - in order to mobilise private capital to support the solvency of eligible companies. The proposal was unveiled on 29 May 2020, as part of the EU Recovery Plan and alongside revamped proposals for the Multiannual Financial Framework (MFF) 2021-2027. It complements the investment support and access to finance available under the EFSI Regulation and the InvestEU Regulation for the period 2021-2027. |
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Source Link | Link to Main Source https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:404:FIN |
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Subject Categories | Business and Industry, Economic and Financial Affairs, Internal Markets |
Subject Tags | Economic Governance | Situation, Investment Plan for Europe | Juncker Plan |
Keywords | COVID-19 (Coronavirus), European Fund for Strategic Investments [EFSI] |
International Organisations | European Union [EU] |