FILE PHOTO: The logos of Amazon, Apple, Facebook and Google in a combination photo. REUTERS
BRUSSELS (Reuters) -Tech giants which control access and data to their platforms could be fined up to 10% of their annual turnover for violating rules aimed at curbing their power, a person familiar with the matter said.
The proposed rules, to be announced by EU digital chief Thierry Breton and EU antitrust czar Margrethe Vestager on Tuesday, are likely to affect Amazon, Apple, Facebook and Alphabet unit Google.
The rules, known as the Digital Markets Act, set out a list of dos and don’ts for online gatekeepers to ensure a level playing field for rivals and users.
This could include requiring dominant companies to share certain kinds of data with rivals and regulators while practices such as companies favouring their own services could be outlawed.
Breton has previously said that gatekeepers can be ordered to change their practices or even be forced to break up their European businesses for repeated breaches of the rules.
The criteria for classifying which companies are gatekeepers are likely to be the number of users, either individual or business users on a pan-European level, a company’s presence in at least two business sectors and revenues, other sources have told Reuters.
The draft rules, which will need feedback from EU countries and the European Parliament, can still be modified before they are presented on Tuesday.
Bloomberg was first to report about a 10% fine for breaches.
Reporting by Foo Yun Chee; Editing by Susan Fenton
<em class="pub-author">EMCDDA,</em>
<em class="pub-local">Lisbon,</em>
<em class="pub-date"><span class="date-display-single" property="dc:date" datatype="xsd:dateTime" content="2020-12-14T00:00:00+00:00">December 2020</span></em>
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<h2 class="publications-summary">Summary</h2>
<div class="field field-name-field-summary field-type-text-long field-label-hidden"><div class="field-items" readability="9"><div class="field-item even" readability="13">The Evidence database is a core component of the EMCDDA’s Best Practice Portal. The portal is a resource for professionals, policymakers and researchers in the drugs field and provides information on the available evidence on drug-related prevention, treatment and harm reduction, focusing on the European context. The evidence is compiled following an explicit methodological process which is described in this document.
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<div class="main-subject"><h3 class="field-label"><i class="fa fa-tag"/> Main subject: </h3><p class="field-items"><span class="field-item"><a href="/topic/best-practice">best practice</a></span></p></div>
The focus of the event was the fallbacks for EURIBOR, where working group on euro risk-free rates members will guide the audience through the recently launched public consultations on EURIBOR fallback trigger events and €STR-based EURIBOR fallback rates.
COMECE Legal Affairs Commission: children and their rights as a EU priority
The COMECE Legal Affairs Commission met on Thursday 3 December 2020 to exchange on current EU and national initiatives in the area of fundamental rights. The event took place by video conference due to the ongoing Covid-19 crisis under the chairmanship of H. E. Mgr. Theodorus C. M. Hoogenboom, Auxiliary Bishop of Utrecht.
The meeting prioritesed the situation of children in the Europea Union. In dialogue with a representative of the European Commission, the experts delegated by the EU Episcopates analysed the EU strategy for a more effective fight against child abuse, emphasising the importance of a multi-stakeholder approach.
The future strategy on the rights of the child (2021-2024) was also discussed with the European Commission. The exchange was timely, as COMECE subsequently contributed to the consultation on this topic.
The impact of the pandemic on the rights of the child and of their parents, as well as the possible expansion of the setting for the future Expert group on violence against children, were among the key points that emerged in this regard.
The General Data Protection Regulation (GDPR), which entered into force in May 2018 and is a permanent priority in the fundamental rights domain, was also addressed. Concerning the Church in the Member States, the experts also shared information and legal questions on recent developments regarding the GDPR, as well as on national systems of Church funding.
In view of the upcoming Christmas period, the COMECE Commission also assessed the impact of the recently issued EU Stay Safe Strategy on religious ceremonies.
The COMECE Legal Affairs Commission will meet for its next meeting on Thursday, 25 February 2021, with a focus on EU non-discrimination policies and initiatives to counter money laundering.
Personally, I accept that the intentions behind the legislation are good. The problem is the apparently rushed and ill-considered overreach which could have broad and – one trusts, but is not quite certain – unintended consequences for freedom of belief, speech and religion.
A meeting of leaders of Victorian churches unanimously supported the intention of the bill to protect vulnerable people from coercive practices.
I emphasise that the churches do not want to be a source of harm to vulnerable people, and it is clear that, sadly, in some cases that has happened, that people have suffered psychological and spiritual damage. A meeting of leaders of Victorian churches last Wednesday unanimously supported the intention of the bill to protect vulnerable people from coercive practices.
Yet, so far as I am aware, the number of coercive conversion therapy cases historically in Victoria is tiny, certainly not enough to justify legislation of this magnitude.
The text of the legislation is troubling, interfering as it does with Christian practices of prayer, conversion, Christian formation, spiritual accompaniment, family and church life, and the ability of individuals to seek advice or counselling to make their own decisions.
Frankly, should someone actively wish to change their orientation, or to seek advice about practising celibacy, or any private matter of conscience, it is none of the government’s business.
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By what right does a secular government try to determine “conversion”, a normal Christian practice – I am an adult convert to Christianity myself – or how Christians may pray? By what right does it try to restrict what people can or cannot say to each other, even if they are adults of a shared cultural or religious identity?
Take celibacy. For two millennia, the Church has advocated that people should refrain from sexual relations outside marriage. What if a young heterosexual and a young homosexual seek counselling about struggles in this area – a not uncommon scenario? Is a pastor to advise the heterosexual but remain silent to the homosexual?
If a married adult is struggling with sexuality and asks for prayer so s/he can contain sexual expression to the marriage, are people praying for them guilty of a “change or suppression practice”? What if a polyamorist is advised to stay faithful in a marriage but decides this advice has damaged him? The bill explicitly says these prohibitions are regardless of consent, or the desires of the subject.
What if a pre-pubescent child requests gender-reassignment treatment, but the parents, who know and love that child, encourage him or her to wait and see if their feelings change? Are the parents guilty of a “change or suppression practice”? That certainly seems a possible interpretation of the legislation.
Further, the definition of sexual orientation has been amended extraordinarily broadly.
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What next? Church leaders are seeking a delay in taking the bill to the Upper House so proper consultation can take place – for example, on clear definitions and on articulation of harmful practices. The explanatory notes say the legislation is not intended to proscribe what can be said in a sermon or lecture, but this is not included in the bill.
Astute observers have also noted that the bill (under Section 57) requires an independent reviewer – chosen by the Attorney-General, so a political appointment – who must consider the need for a redress scheme. That raises the stakes.
The penalties under the bill are severe, including imprisonment. The government wants to suggest that not much is changing but, with the bill as it is, that is clearly untrue. How can it hurt the government to hold off a little longer, and actually consult? If the churches are sympathetic to the government’s motives, as they are, why not allay their concerns?
Barney Zwartz, religion editor of The Age from 2002 to 2013, is a senior fellow of the Centre for Public Christianity.
Barney Zwartz, a senior fellow of the Centre for Public Christianity, was religion editor of The Age from 2002 to 2013.
<figure class="inline photoswipe_slides full" readability="4.5"> <a href="https://media.winnipegfreepress.com/images/FS102-1213_2020_101414.jpg" data-index="1" data-size="650x433" rel="nofollow"> </a>
<figcaption readability="9">Britain's chief negotiator David Frost leaves after a meeting with European Commission's Head of Task Force for Relations with the United Kingdom Michel Barnier in Brussels, Sunday, Dec. 13, 2020. Facing yet another self-imposed Brexit deadline on Sunday, the chief negotiators from the European Union and United Kingdom were making last-ditch efforts to scale differences on a trade deal that have proved insurmountable for the best part of the year. (AP photo/Francisco Seco)</p></figcaption> </figure>
<p>BRUSSELS - European Union chief negotiator Michel Barnier said Monday he still firmly believes that a post-Brexit trade agreement is possible, and whittled down the major outstanding disputes to be settled ahead of the New Year to just two. </p>
<p>Britain, meanwhile, said the negotiations now taking place in Brussels could continue for some time yet and indicated it was not planning to pull the plug on the talks as long as progress was possible. </p>
<p>Barnier said the nine-month negotiations had come down to finding some agreements on fair-competition rules and fishing rights, no longer mentioning the issue of legal mechanisms for resolving future disputes. </p>
<p>“Two conditions are not met yet," he said as he entered a meeting to brief the EU's 27 nations on progress in the talks. He is expected to continue negotiations with his U.K. counterpart, David Frost, later on Monday. </p>
<p>“This deal, it is still possible," he added. </p> <figure class="inline photoswipe_slides full" readability="5.5"> <a href="https://media.winnipegfreepress.com/images/VLM102-1213_2020_074940.jpg" data-index="2" data-size="650x408" rel="nofollow"> </a>
<figcaption readability="11"><p>Britain's chief negotiator David Frost, left, arrives for a meeting at EU headquarters in Brussels, Sunday, Dec. 13, 2020. Facing yet another self-imposed Brexit deadline on Sunday, the chief negotiators from the European Union and United Kingdom were making last-ditch efforts to scale differences on a trade deal that have proved insurmountable for the best part of the year. (AP Photo)</p></figcaption> </figure>
<p>In Britain, Business Secretary Alok Sharma said “the fact that we’re continuing to have these discussion shows that there is an opportunity to try and make some progress." </p>
<p>“Our intention is not to walk away. We will continue to talk as long as there is the possibility of reaching a deal,” he said. </p>
<p>Both sides are teetering on the brink of a no-deal Brexit departure, but have committed to a final push ahead of Jan. 1, when a transitional period following Britain's Jan. 31 departure from the bloc is to end. </p> <figure class="inline photoswipe_slides full" readability="4"> <a href="https://media.winnipegfreepress.com/images/FS106-1213_2020_114556.jpg" data-index="3" data-size="650x426" rel="nofollow"> </a>
<figcaption readability="8"><p>European Commission President Ursula von der Leyen delivers a statement at the EU headquarters in Brussels, Sunday, Dec. 13, 2020. Britain and the European Union say talks will continue on a free trade agreement — a deal that if sealed would avert New Year's chaos for cross-border traders and bring a measure of certainty for businesses after years of Brexit turmoil. (Olivier Hoslet/Pool Photo via AP)</p></figcaption> </figure>
<p>On Sunday, British Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen ditched a self-imposed deadline and promised to “go the extra mile” to clinch a post-Brexit trade agreement that would avert New Year’s chaos and costs for cross-border commerce. </p>
<p>With traffic jams already hampering access to cross-Channel ports like Dover in England and Calais in northern France, the time pressure should start to have an impact, specifically on London, said Fabian Zuleeg, head of the EPC think-tank . </p>
<p>“We are seeing the lorries queuing. We are seeing that there are difficulties with some of supply chains. We’re seeing also that business is extremely unhappy about still being in a high degree of uncertainty with only a few days to go.” Zuleeg said. </p> <figure class="inline photoswipe_slides full" readability="5"> <a href="https://media.winnipegfreepress.com/images/XAP101-1213_2020_112643.jpg" data-index="4" data-size="650x433" rel="nofollow"> </a>
<figcaption readability="10"><p>Media outside 10 Downing Street, in London, Sunday, Dec. 13, 2020. Facing yet another self-imposed Brexit deadline on Sunday, the chief negotiators from the European Union and United Kingdom were making last-ditch efforts to scale differences on a trade deal that have proved insurmountable for the best part of the year. (AP Photo/Alberto Pezzali)</p></figcaption> </figure>
<p>Barnier is willing to accept British trade with no tariffs or quotas, but only if the U.K respects the rules and regulations that have made the EU's single market of 450 million consumers so successful. </p>
<p>“Free and fair competition, fair and free, equitable and open, the two go together," Barnier said. </p>
<p>Johnson, however, says he does not want British business to be hemmed in by EU restrictions, especially if those restrictions would have to be progressively adapted to higher mainland standards in the future. </p> <figure class="inline photoswipe_slides full" readability="5"> <a href="https://media.winnipegfreepress.com/images/FS113-1214_2020_102144.jpg" data-index="5" data-size="650x433" rel="nofollow"> </a>
<figcaption readability="10"><p>Britain's chief negotiator David Frost leaves the UK ambassador's resident in Brussels, Monday, Dec. 14, 2020. Britain and EU are teetering on the brink of a no-deal Brexit departure, but have committed to a final push ahead of Jan. 1, when a transitional period following Britain's Jan. 31 departure from the bloc is to end. (AP Photo/Francisco Seco)</p></figcaption> </figure>
<p>On fisheries, Barnier demanded “an agreement that guarantees a reciprocal, I insist, reciprocal access to markets and waters." EU fishermen are keen to keep working in British waters and the U.K. seafood industry is extremely dependent on exports into the 27-nation bloc. </p>
<p>Johnson has made fisheries and U.K. control over its waters a key demand in the long saga of Britain's departure from the EU. It has been four-and-a-half years since Britons voted narrowly to leave the EU and — in the words of the Brexiteers’ slogan — “take back control” of the U.K.’s borders and laws. </p>
<p>Johnson said over the weekend the “most likely” outcome was that the two sides wouldn’t reach a deal and would trade on World Trade Organization terms, with the tariffs and barriers that would bring. </p>
<p>But after Barnier briefed the ambassadors of the EU nations, one EU diplomat said there might be a narrow path to an agreement visible "if negotiators can clear the remaining hurdles in the next few days." The official spoke on condition of anonymity because the talks were still ongoing. </p>
<hr/><p>Kelvin Chan contributed from London, Mark Carlson from Brussels </p>
<hr/><p>Follow all AP stories on the Brexit trade talks at https://apnews.com/hub/brexit </p>
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Technically the UK has left the European Union. But from the traveller’s point of view, nothing significant has changed during the transition phase. This comes to an end at 11pm GMT (midnight Central European Time) on 31 December 2020.
From that moment, the ease with which the British have holidayed, worked and lived in the EU for decades will end.
Back at the time of the EU referendum in June 2016, you might have inferred from the Leave campaign that not much would change in terms of our freedom to travel and spend time abroad.
Immediately after the vote, Boris Johnson reinforced that impression when he wrote: “British people will still be able to go and work in the EU; to live; to travel; to study; to buy homes and settle down.” He also promised “access to the single market”.
Those promises are long forgotten, and instead the UK government has chosen a course that brings a tangle of rules and restrictions for travellers.
One exception is for Ireland, where relatively little changes. The most significant effects involve taking pets across the Irish Sea, the reintroduction of customs controls between the island of Ireland and Great Britain, and some motor-insurance rules.
For everywhere else in Europe, these are the most critical changes.
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If you have a burgundy passport with “European Union” on the cover, it will continue to be valid as a UK travel document. But it loses all its EU powers. From the start of 2021, European rules on passport validity become much tougher.
On the day of travel to the EU (as well as non-members Andorra, Iceland, Liechtenstein, Norway, San Marino, Switzerland and the plucky Vatican City) your passport must pass two tests.
1. Does it have six months’ validity remaining?
2. Was it issued less than nine years, six months ago?
The reason: the UK has traditionally given renewals up to nine months’ extra validity in addition to the normal 10 years.
A passport issued on 30 June 2011 could show an expiry date of 30 March 2022, for example.
While this was fine when the UK was part of the European Union, British travellers must now meet the strict rules on passport validity for visitors from “third countries”.
In particularly, passports issued by non-member countries are regarded as expired once they have been valid for 10 years.
While the expiry date printed in the passport remains valid for the UK and other non-EU countries around the world, within the European Union the issue date is equally critical.
A passport issued on 30 June 2011 is regarded by the EU as expiring on 30 June 2021. Therefore if the holder attempted to board a plane to the European Union on New Year’s Day 2021, it would be considered to have insufficient validity and the airline would be obliged to turn them away – even though the British passport has almost 15 months to run.
Until September 2018, the UK government appeared unaware of the problem. Once the issue was identified, the practice of giving up to nine months’ grace ended abruptly. But tens of millions of passports valid for longer than 10 years are in circulation.
Border formalities
EU fast-track lanes for passport control will no longer be open to British travellers, although countries that receive a large number of visitors from the UK, such as Spain and Portugal, may make special arrangements.
But immigration procedures will be slower, and British travellers will no longer have any guarantee of entry.
At present, all that a border official can do is to check the travel document is valid, and that it belongs to you.
From 1 January 2021, the official is required by EU law to conduct deeper checks. They may ask for the purpose of the visit; where you plan to travel and stay; how long you intend to remain in the EU; how you propose to fund your stay; and whether you constitute a threat to public health.
Length of stay
From 1 January 2021, as the UK chooses to become a third country, the EU’s long-standing “90/180 rule” takes effect for British travellers.
For holidaymakers and business travellers who normally stay a long time in Europe, it has significant effects. You may stay only 90 days (about three months) in any 180 (six months) in the Schengen area – comprising almost all the EU countries except Bulgaria, Croatia, Cyprus and Romania. (Ireland is also non-Schengen, but is part of the Common Travel Area with freedom of movement to and from the UK and smaller islands.)
Example: if you spend January, February and March in the Schengen Area (totalling 90 days), then you must leave the zone before 1 April and cannot return until 30 June.
You will then be able to spend the summer in Europe until 27 September, when you must leave again. You may not come back until Boxing Day.
Any time spent in the Schengen Area up to the end of 2020 does not count. So if you spend December in Spain, the clock does not start ticking until New Year’s Day.
The UK government says: “Different rules will apply to Bulgaria, Croatia, Cyprus and Romania. If you visit these countries, visits to other EU countries will not count towards the 90-day total.”
British citizens can stay as long as they like in the Republic of Ireland.
People who have a work or residential visa for a specific EU country will be treated differently.
What happens if I overstay?
In general travellers are given three days’ grace. Any longer than that and they are likely to be handed an entry ban for one year. This applies throughout the Schengen Area – not just the country in which you overstayed.
Can’t I just nip across a border and ‘re-set the clock’?
No. The 90/180 rule applies to the entire Schengen Zone. If you leave the zone (for example by returning to the UK or crossing from Slovenia into Croatia) that exit will be recorded on the central database.
When you return, the frontier officials will check to see how much of your allowance has been used and calculate how much remains.
Visas
Initially British travellers will not need to apply in advance for permission to enter the EU. But from 2022 (or possibly later) British visitors will need to register online and pay in advance for an “Etias“ permit under the European Travel Information and Authorisation System. This is a relatively light-touch visa, akin to the Esta used by the US.
Brexit briefing: How long until the end of the transition period?
Returning to the UK
Previously there were no limits on the value of goods you could bring in from European Union nations. From the start of 2021, the European Union will be treated the same as the rest of the world – which means that there are now restrictions.
For alcohol, the limits are generous: 4 litres of spirits or 9 litres of sparkling wine, 18 litres of still wine and 16 litres of beer, which hopefully will see you through at least an evening.
Arrivals to the UK will also qualify to bring in 200 duty-free cigarettes. “Anything that increases the availability of tobacco is a negative step for public health,” the British Medical Association says. But the previous practice of buying large quantities of cigarettes or tobacco in countries such as Belgium or the eastern European states will have to cease.
If you exceed any of these limits, you will pay tax on the whole lot.
There is a limit of €430 – roughly £400 – for all other goods, from Camembert to clothing.
Health care
For more than 40 years, British travellers have benefited from free or very low-cost medical treatment in the EU and its predecessor organisations. The European Health Insurance Card (Ehic) and the document it replaced, the E111, have proved extremely valuable for many elderly travellers, and/or people with pre-existing medical conditions.
Since the EU referendum, the government has repeatedly said that it hopes to establish a reciprocal health treaty mirroring the European Health Insurance Card (Ehic).
The Independent understands that negotiations are continuing on health care, 232 weeks after the vote to leave the European Union.
If an agreement is not reached, the government may pursue options such as bilateral arrangements between the UK and individual countries.
On 9 December 2020, when asked about free medical treatment in the EU in the event of a no-deal Brexit. Michael Gove promised: “For a period, yes, there will be appropriate access.”
One certainty is that travellers who are abroad at the turn of the year will continue to be covered: if you enter an EU country by 31 December 2020, your Ehic will remain valid until you leave that country.
The Association of British Insurers warns: “Claims costs within Europe are currently reduced due to the presence of the Ehic, which covers some or all state-provided medical costs.
“In the absence of the Ehic or similar reciprocal health agreement, insurers will inevitably see an increase in claims costs – this could have a direct impact on the prices charged to consumers.”
EU nationals in the UK will be able to apply for a British Ehic card, as will UK students studying in the European Union – and some British pensioners who live in the EU, plus their families.
Driving licences
Your licence carries the EU symbol. As with passports, it will lose its European powers, but will still be valid as a UK document from 2021 until its expiry date.
The government says: “You may need extra documents from 1 January 2021. You might need an international driving permit (IDP) to drive in some countries.”
In fact, you may need two. A 1949 IDP (valid one year) is required for Spain, Cyprus and Malta, while the 1968 version (valid three years) will be essential everywhere else in the EU.
The IDP is an antiquated document available at larger post offices. Take your driving licence plus a passport photo and £5.50 for each permit that you need.
Motor insurance
Under the European Union 2009 motor insurance directive, any vehicle legally insured in one EU country can be driven between other European nations on the same policy.
From 1 January you will need a “Green Card” – an official, multilingual translation of your car insurance that demonstrates you meet the minimum cover requirements for the country you’re visiting.
Insurers will generally provide them free of charge, but require around two weeks’ notice.
Flights
The transport secretary, Grant Shapps, says: “The government’s priority is to ensure that flights can continue to operate safely, securely and punctually between the UK/EU at the end of transition period, regardless of the outcome of negotiations.
“Air travel is vital for both the UK and the EU in connecting people and facilitating trade and tourism, and we are confident measures will be in place to allow for continued air connectivity beyond the end of 2020.”
Some UK airport disruption caused by tough new passport rules may occur in the first few days if significant numbers of British travellers are denied boarding.
Ferries/Eurotunnel
Ships will continue to sail and trains will continue to run, but the National Audit Office (NAO) warns that motorists taking their cars to France on ferries from Dover or Eurotunnel from Folkestone face waits of up to two hours once the Brexit transition ends – and that queues could be “much longer” in summer.
Eurostar
Passenger trains linking London St Pancras with Paris, Brussels and Amsterdam will continue to run – but because of travel restrictions applied in response to the coronavirus pandemic, services are currently extremely limited.
Mobile phones
From 1 January 2021, the EU-wide ban on roaming charges for phone calls and internet use no longer applies to people with UK mobile phones. Providers will be free to impose whatever fees they wish.
But all the big providers have told The Independent they do not intend to bring back roaming charges.
O2 says: “We’re committed to providing our customers with great connectivity and value when they travel outside the UK. We currently have no plans to change our roaming services across Europe, maintaining our ‘Roam Like At Home’ arrangements.”
3 says: “We’ll give you free EU roaming just the same.”
EE says: “Our customers enjoy inclusive roaming in Europe and beyond, and we don’t have any plans to change this based on the Brexit outcome. So our customers going on holiday and travelling in the EU will continue to enjoy inclusive roaming.”
Vodafone says: “We have no plans to reintroduce roaming charges after Brexit.”
Should these or other providers introduce roaming charges, the government says it will cap the maximum for mobile data usage while abroad at £49 per month unless the user positively agrees to pay more.
Pets
For many years British travellers have been able to take a cat, a dog or even a ferret abroad with minimal formalities. But pet passports will run out at the end of the year, making journeys with cats, dogs and ferrets to the EU more complicated.
And for the first time, taking a pet to Northern Ireland from the rest of the UK will involve red tape – and a rabies vaccination for the animal.
The European Commission has set out the new rules for taking pets from Great Britain that will apply from 1 January 2021.
While animal owners from Northern Ireland will continue to have access to the EU’s pet passport scheme, those in England, Wales and Scotland will need to obtain an “animal health certificate” in advance of every visit to the European Union and Northern Ireland, showing their pet has been vaccinated against rabies.
In addition, for entry from Great Britain into Northern Ireland and the republic, as well as to Finland and Malta, pet dogs will have to be treated against Echinococcus multilocularis – an especially unpleasant tapeworm.
At present there are no restrictions in taking pets between any of the four UK nations. But after the Brexit transition phase ends, owners in Great Britain taking their pets to Northern Ireland will need to get an animal health certificate issued by an official vet attesting to a rabies vaccination.
Coming home will be the same as now. “There will be no change to the current health preparations for pets entering Great Britain from the EU from 1 January 2021,” says the UK government.
The EIF has signed a guarantee deal with Faktoro, allowing them to start a programme of micro-loans to small companies in Lithuania, as part of the EIB Group’s Covid-19 support measures, informed EIF.
The guarantee of a portfolio of up to €6 million in micro-loans is backed by the European Union under EU programme for Employment and Social Innovation (EaSI).
The financing is expected to support up to 330 transactions with small businesses, for a maximum loan amount of EUR 25,000.
With EU-backing, over 300 Lithuanian micro-enterprises are set to get access to finance through a guarantee deal between the European Investment Fund (EIF) and fintech company Faktoro. Known for its factoring services, the up to €6 million guarantee deal will allow Faktoro to start awarding working capital loans of up to EUR 25,000 to micro enterprises in Lithuania. The EIF-guarantee is supported under the EU programme for Employment and Social Innovation (EaSI).
Faktoro will use the EaSI guarantee to launch a new working capital lending product for micro-enterprises in start-up or development phase, and expects to serve around 330 clients. In the current difficult economic environment, the EIF will initially guarantee up to 90% of all transactions as part of its Covid-19 support measures. Apart from enhancing access to finance for micro-enterprises in Lithuania, the working capital loan offered will be essential in providing liquidity to companies during the Covid-19 economic recovery.
European Commissioner for Jobs and Social Rights, Nicolas Schmit, said: “Thanks to EU-backing by the EaSI Guarantee, this agreement between European Investment Fund and Faktoro will unlock access to finance for more than 300 small businesses in Lithuania. The ongoing Covid-19 crisis continues to hit hard many micro-enterprises across Europe. The Commission will continue to use all the tools at its disposal to protect workers and preserve jobs.”
“Small businesses have always been struggling with traditional bank finance, and the economic fallout of the Covid-19 pandemic can further deteriorate their access to finance,” saidEIF Chief Executive Alain Godard “That is why we are glad to support microfinance in Lithuania through Faktoro, which focuses on the start-up segment. Since the Baltic countries are traditionally a hotbed for innovation, backing access to finance for tomorrow’s solutions is high on our priority list.”
“Firstly we are very happy and proud for the given trust from EIF to have the ability to finance micro and small enterprises that need help. Micro and small enterprises will now have the ability to receive loans in particularly flexible conditions, without additional collaterals. We expect that in this period of uncertainty and after, this facility will help Lithuanian companies to expand and create more jobs. ” said Algirdas Gutauskas, CEO of Faktoro.
