On April 3, 2020 the European Commission announced the adoption of an amendment extending and adding flexibility to the Temporary Framework adopted on March 19, 2020 to enable Member States to give State aid for research, testing and production of coronavirus related products, and also to grant greater volumes of aid in under the categories already allowed in under the original Temporary Framework.
On March 19, 2020, the European Commission issued a communication setting out a Temporary Framework that provides for more flexible and quicker authorization of State aid granted to support the economy in the current COVID-19 outbreak. The Temporary Framework is based on article 107(3)(b) of the Treaty on the Functioning of the European Union (TFEU), which makes it possible to authorize aid intended to remedy a serious disturbance in the economy of a Member State.
Royal Decree No. 463/2020 declaring a state of alert in Spain to manage the COVID-19 public health crisis was published on March 14, 2020. Among other measures designed to respond to the outbreak and alleviate its consequences, all court and administrative time limits have been suspended for fifteen natural days (i.e. until March 29, 2020). This period, however, may be extended if necessary.
The draft prepared by the european authority, pending publication of the final opinion, will apply to the remuneration of certain professionals of insurance and reinsurance companies.
One way to boost the digital economy in the EU would be to help banks making loans to new businesses. To do this, the institutions themselves need to know about venture debt and other possible products, and the European and national authorities need to support a stable legal framework adapted to the business environment including the area of bank finance.
The Spanish Tax Agency (AEAT) publishes new leaflets to assist operators with their obligations in relation to Brexit (see here).
Ministry of Finance has published a draft law and a preliminary bill for a royal decree to implement in Spain the EU provisions introducing changes in relation to VAT in intra-Community trade in goods and opens the period for comments and public information. The time limit for sending comments on the instruments is October 18.
On September 10, the Advocate General (AG) issued his opinion on a preliminary ruling to be rendered by the Court of Justice of the European Union (CJEU) regarding a lawsuit in Spain over the validity, under the European directive on unfair terms in consumer contracts (Directive 93/13), of a contractual clause referencing a local interest rate benchmark in floating rate residential mortgage loans. The press has regarded the opinion as unfavorable to the banks. If upheld by the CJEU, it could mark a turning point in the underlying lawsuits. A final negative outcome could provoke massive losses for a number of Spanish banks with the possibility to accelerate a wave of domestic and European bank mergers.
A no deal Brexit could prompt legal action by the European Union against the UK to claim payment of the financial obligations it assumed before its exit. This massive lawsuit, over a sum possibly in the region of 50 billion euros, could have extremely serious implications for the UK as a sovereign state.