Coronavirus Response: Commission welcomes ‘Best Practices’ to provide relief for consumers and businesses

coronavirus EU

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


The European Commission has welcomed a list of ‘best practices’ agreed by the financial sector, and consumer and business organisations, to help further mitigate the impact of the coronavirus pandemic. It sets out concretely how different market participants can support citizens and businesses throughout the crisis.

Today’s ‘best practices’ cover several issues, including:

  • Payment moratoria for consumer and business loans, and for insurance contributions: these measures can help those facing financial difficulties by deferring payments;
  • Enabling safer cashless payments while ensuring cash payments remain available for those who need them;
  • Ensuring loans aimed at mitigating the impact of coronavirus are provided swiftly, and that the fees and interest rates incurred are fair;
  • Legitimate insurance claims are processed and paid out as quickly as possible.

Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People said: “Our goal right now is to make sure that the liquidity taps are kept turned on and that consumers and especially smaller companies can get the financial support they need. I warmly welcome the extensive dialogue that we have had with the European financial sector, and business and consumer representatives. Our fruitful discussions have led to today’s ‘best practices’ list. I invite all those concerned to make full use of this valuable tool. We will take stock of the situation in September and continue the discussion on how to best ensure continuous flows of credit, as part of the recovery.”

Today’s ‘best practices’ list follows two roundtable meetings facilitated by the Commission with consumer and business representatives, European banks, other lenders, and the insurance sector. The discussions are part of a wider effort by the Commission to increase lending to the real economy, including a banking package in April. The Commission will facilitate a further roundtable in September to take stock of progress and will continue the dialogue with stakeholders to support lending during the recovery. All participants are encouraged to follow these best practices.

Today’s text has been agreed by all roundtable participants and includes:

  • Best practices for bank and non-bank lending to consumers;
  • Best practices for bank and non-bank lending to businesses;
  • Best practices for insurers.

Background

The economic shock caused by the coronavirus pandemic is having a far-reaching impact on businesses and consumers. On 28 April 2020, the Commission adopted a banking package to help facilitate bank lending to support the economy. The swift agreement of the package by the European Parliament and Council has meant that the targeted legislative changes included in the package can already be in place for the second quarter of 2020.

As part of this package, the Commission announced a dialogue with the European financial sector, as well as business and consumer representatives. The purpose of this dialogue was to explore how different financial players could support citizens and businesses throughout the pandemic. On 28 May, the Commission organised a first roundtable meeting with stakeholders to discuss relief measures where all represented parties declared their openness to cooperation and dialogue. As a follow up, on 29 June, the Commission organised a second roundtable meeting. Today’s ‘best practices’ list was agreed following this meeting.

Over 25 organisations participated in both roundtables including from:

  • Consumer organisations
  • Business federations
  • Insurance companies
  • Banks

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

New EU rules ensure better protection for 120 million holidaymakers this summer

European Border and Coast Guard: 10 000-strong standing corps by 2027

Google succumbs unconditionally to EU’s “right to be forgotten” ruling

COVID-19 will hit the developing world’s cities hardest. Here’s why

Tributes for ‘role model’ former UN refugee agency chief, Sadako Ogata

The big five EU telecom operators in dire straights

AI can wreak havoc if left unchecked by humans

Clamp down on illegal trade in pets, urge Public Health Committee MEPs

As conflicts become more complex, ‘mediation is no longer an option; it is a necessity’, UN chief tells Security Council

We are ‘burning up our future’, UN’s Bachelet tells Human Rights Council

Hydrogen isn’t the fuel of the future. It’s already here

5 ways COVID-19 has changed workforce management

Terrorism and migrants: the two awful nightmares for Europe and Germany in 2016

EU job-search aid worth €2 million for 500 former shipbuilding workers in Spain

France pushes UK to stay and Germany to pay

Where EU air pollution is deadliest

China rare earth prices soar on their potential role in trade war

Harmonised Unemployment Rates (HURs), OECD – Updated: February 2020

UN spotlights wellbeing of seafarers on International Day

‘Much more’ can be done to raise awareness about the plight of persons with albinism: UN chief

UN-backed intercultural dialogue forum urged to keep working to ‘bridge gap between the like-minded’

EU joint response to disasters: deal reached with Council

Combatting terrorism: Parliament sets out proposals for a new EU strategy

This South Korean city once had the biggest coronavirus outbreak outside of China. Now it’s reported zero new cases

Commission moves to ensure supply of personal protective equipment in the European Union

5 crises that could worsen under COVID-19

Finland has just published everyone’s taxes on ‘National Jealousy Day’

ITU Telecom World 2017: exploring smart digital transformation

European Parliament calls on Russia to end occupation of Georgian territories

5 neuroscience hacks that will make you happier

RescEU: MEPs vote to upgrade EU civil protection capacity

All for equality – 2020 is a pivotal year for Gender Equality

Deeper reforms in Korea will ensure more inclusive and sustainable growth

UN Climate Action Summit concludes with insufficient EU and global pledges

Milk, fruits and vegetables distributed to schoolchildren thanks to EU programme

China’s cities are rapidly becoming more competitive. Here’s why

Security Council must ‘come together’ to address the plight of children trapped in armed conflict, says UN envoy

EU Migrant Crisis: Italian Coast Guard Headquarters and Italian Navy to give host national opening addresses at Border Security 2016 in Rome

New EU-UK agreement is welcome but thorough scrutiny remains, insist lead MEPs

Coal addiction ‘must be overcome’ to ease climate change, UN chief says in Bangkok

EU27 leaders unite on Brexit Guidelines ahead of “tough negotiations” with Theresa May

How to get young people in Europe to swipe right on voting

This is Amsterdam’s ambitious plan to turn its transport electric

Reforms in Latvia must result in stronger enforcement to tackle foreign bribery and subsequent money laundering risks

Parliament boosts consumer rights online and offline

What is systemic racism, and how can we combat it?

EU Council approves visa-free travel for Ukraine and cement ties with Kiev

Powering a climate-neutral economy: Commission sets out plans for the energy system of the future and clean hydrogen

Marginalized groups hit hardest by inequality and stigma in cities

OECD joins with Japan to fight financial crime by establishing new academy

The business case for diversity in the workplace is now overwhelming

EU Parliament and Council: Close to agreement on the bank resolution mechanism

Poor quality is healthcare’s silent killer. Here’s what we can do about it

ECB asks for more subsidies to banks

Global trade is broken. Here are five ways to rebuild it

Intervene, don’t overthink – the new mantra of systems design

We need natural solutions to fight ocean and climate risk

EU Parliament: No EU-US trade agreement without safe data

The MWC14 Sting Special Edition

Italy and Greece zeroed their fiscal deficits, expect Germany’s response

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s