European Commission approves new state aid scheme for SMEs affected by coronavirus pandemic
The European Commission has approved a Romanian scheme worth 216 million euros (RON 1.043 billion) to support small and medium-sized enterprises (SMEs) affected by the coronavirus pandemic according to the Commission’s press release of November 24. The scheme was approved under the Temporary Framework on State Aid. Approximately EUR 207 million (RON 1 billion) of the total amount of support will take the form of guarantees for factoring products (against the seller), and approximately EUR 9 million (RON 43 million) will be direct grants to cover commissions related to guaranteed factoring products.
With regard to guarantees for factoring products: i) the guarantee may not exceed 50% of the factoring products and ii) the guaranteed factoring product has an initial period of validity of 12 months, which may be extended up to a limit of 48 months, but without any discretionary power on the part of the granting authority.
The aim of the measure is to help SMEs cope with the liquidity shortage they face due to the coronavirus pandemic and to ensure that they have diversified financing channels. Only factoring products issued between 26 August 2020 and 30 June 2021 are eligible under the measure.
EU consumers will soon be able to defend their rights collectively
On 24 November 2020, European Parliament endorsed a new law that will allow groups of consumers to join forces and launch collective action in the EU. The new rules introduce a harmonised model for representative action in all member states that guarantees consumers are well protected against mass harm, while ensuring appropriate safeguards to avoid abusive lawsuits.
All member states must put in place at least one effective procedural mechanism that allows qualified entities (e.g. consumer organisations or public bodies) to bring lawsuits to court for the purpose of injunction (ceasing or prohibiting) or redress (compensation). This legislation aims to improve the functioning of the internal market by stopping illegal practices and facilitating access to justice for consumers.
The European class action model will allow only qualified entities, such as consumer organisations, to represent groups of consumers and bring lawsuits to court, instead of law firms. The rules also introduce strong safeguards against abusive lawsuits by using the “loser pays principle”, which ensures that the defeated party pays the costs of the proceedings of the successful party.
Turnover of market services rendered mainly to enterprises
The National Institute of Statistics published on 16 November data on turnover of market services rendered mainly to enterprises in September 2020. Thus, in September 2020, turnover of market services rendered mainly to enterprises, in nominal terms, increased compared to the previous month, both as a gross series by 11.0% and as a series adjusted according to the number of working days and seasonality by 3.9%. Compared to the corresponding month of the previous year, the turnover of market services rendered mainly to enterprises increased, in nominal terms, both as a gross series by 6.6% and as a series adjusted according to the number of working days and seasonality by 3.8%.
Between 1 January and 30 September 2020, the turnover of market services rendered mainly to enterprises, in nominal terms, increased compared to the period 1 January – 30 September 2019, both as gross series and as series adjusted according to the number working days and seasonality by 2.9% and 2.6%, respectively.
„ElectricUp” – financing program for small and medium enterprises and HORECA sector
The Ministry of Economy, Energy and Business Environment has finalized the guide of the “Electric Up” Program. For the technical preparation of the projects, on the website of the ministry is available for consultation the draft financing guide „ElectricUp”, for small and medium enterprises and the HORECA sector, on the installation of photovoltaic panel systems for electricity production with an installed capacity between 27 kWp – 100 kWp required for own consumption and delivery of the surplus in the National Energy System, as well as recharging stations of at least 22 kW for plug-in hybrid electric and electric vehicles.
Electronic contract registration procedure for Measure 1: Micro-grants granted from non-reimbursable external funds
The procedure for registering electronic contracts for Measure 1: Micro-grants granted from non-reimbursable external funds is now available on the website of Ministry of Economy, Energy and Business Environment at the following link: procedure.