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Midday Express of 2011-07-25
Commission Européenne - MEX/11/0725 25/07/2011
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EXME 11 / 25.07
Midday Express of 2011-07-25
News from the Communication Directorate General's midday briefing
Nouvelles du rendez-vous de midi de la Direction Générale Communication
A small Italian cheese company supplies mozzarella to a frozen pizza maker in France. After the French company falls behind on its payments, the Italian firm stops the shipments, but it’s stuck with thousands of euros of unpaid bills. How will the Italian company recover the debt? Today there is no easy answer. Fraudsters can easily move money from one Member State to another, stashing funds in several accounts in multiple countries. Citizens also suffer when goods bought online are never delivered or an absent parent fails to pay maintenance from abroad. At the moment, it’s up to national law to require a bank to pay the money from a client’s bank account to a creditor. The current situation in the 27 Member States is legally complicated, time consuming and expensive. Around 1 million small businesses face problems with cross-border debts and up to €600 million a year in debt is unnecessarily written off because businesses find it too daunting to pursue expensive, confusing lawsuits in foreign countries. The European Commission today proposes a new Europe-wide preservation order to ease the recovery of cross-border debts for both citizens and businesses.
State aid: Commission approves Spanish capital injection for Caja de Ahorros del Mediterraneo
The European Commission has approved, under EU state aid rules, a €2,8 billion capital injection and €3 billion liquidity facility for Caja de Ahorros del Mediterraneo (CAM), provided under the Spanish Fondo de Restructuración Ordenada Bancaria (FROB). The FROB was established during the crisis to support the consolidation in the Spanish banking sector and ensure an orderly restructuring of banks. The Commission found the rescue package for CAM to be in line with its guidance on state aid to banks to overcome the financial crisis (see IP/08/1495). In particular, the measures are limited in time and Spain committed to submit a restructuring plan within six months. They can therefore be considered as an appropriate means for remedying a serious disturbance in the Spanish economy and as such are compatible with the internal market under Article 107(3)(b) of the TFEU.
Kristalina Georgieva, the European Commissioner for International Cooperation, Humanitarian Aid and Crisis Response will announce today new aid funding for famine and drought victims on the first day of a visit to Kenya.The Commission is making an immediate allocation of 27.8 million euros, which comes on top of the 70 million euros already given to the region this year, in response to the worsening humanitarian situation in the Horn of Africa. Kristalina Georgieva will visit the Dadaab refugee camp where she will meet families driven from Somalia by decades of conflict and the worst drought in 60 years.
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