The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

50 LEGAL IMPACTS OF COVID-19 IN THE TOURISM INDUSTRY decision was that it recognised the coronavirus situation as a whole as an “exceptional occurrence” (an unforeseeable, extraordinary event and with a significant economic impact) within the meaning of Article 107(2)(b), a precondition of granting aid on this legal basis56. Another hint that State aid rules would adapt soon to the developing crisis was a Commission Communication57 on coordinated economic response to the COVID-19 outbreak, which, as explained above, recognised the State aid ramifications of the COVID-19 situation. As mentioned above, the recommendation also foreshadowed that the Commission was working on a temporary framework similar to the 2009 framework58 that would serve as the basis for Member States, subject to notification and Commission approval, to introduce crisis aid measures under Article 107(3)(b) TFEU (as aid “to remedy a serious disturbance in the economy of a Member State”). While the Communication hinted that only the Italian situation warranted clearly Article 107(3)(b) measures at that time, and that the Commission would continue to monitor the situation before adopting the framework, only six days had to pass before it was made available to all Member States. The Communication, beyond giving an outline of the State aid toolset available in the pandemic-related crisis, included two more indications that would be key in the months to come. First, the Commission facilitated its procedure to enable quick decision-making; and second, it promised to make templates, a dedicated hotline and an e-mail address available to help Member States design and implement measures efficiently to tackle the pandemic. The Directorate-General for Competition’s website for COVID-19 related cases59 has been a key source of information since then, with case lists, notification templates and other documents helping Member States design State aid measures and simplifying notification procedures. On 19 March 2020, following brief and informal consultations with Member States, the Commission adopted the Temporary Framework60. The document echoed the contents of the 13 March communication about the possible 56 SA.56685, paragraphs 24-30. 57 Communication from the Commission to the European Parliament, the European Council, the Council, the European Central Bank, the European Investment Bank and the Eurogroup Coordinated economic response to the COVID-19 Outbreak COM/2020/112 final 58 Temporary Community framework for State aid measures to support access to finance in the current financial and economic crisis, OJ C16, 22.1.2009. Other Member States introduced similar measures. See Commission decision of 22 April 2020 SA.57051 (2020/N) – Sweden – COVID-19 Aid for cancelled or postponed cultural events. 59 Source: https://ec.europa.eu/competition-policy/state-aid/latest-news_en. 60 Communication from the Commission Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak, C(2020) 1863 final, 19 March 2020

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