THE FEDERAL REPUBLIC OF GERMANY
Other Recent Developments
General Considerations Relating to the COVID-19 Pandemic
In late October 2020, many European countries scaled up non-pharmaceutical interventions following a resurgence of confirmed COVID-19 cases and associated hospitalizations and deaths. In early December 2020, the European Centre for Disease Prevention and Control (“ECDC”) reported that after months of continuous increase, the most recent epidemiological data indicated that the number of notified cases had just begun to decrease overall in Europe. However, national notification rates showed variable trends across European countries and transmission rates remained high in most parts of Europe, with all countries except one being in a situation of serious concern in the last week of November 2020. According to the ECDC, high levels of transmission continue to pose a threat for healthcare capacity due to increasing healthcare demand and the risk that more healthcare workers might contract COVID-19 and be isolated or quarantined as a result. The hospital bed and intensive care unit occupancy rates continue to increase or remain high in many countries, and further increases of positive COVID-19 cases, due, among others, to the projected impact of relaxing protective measures in connection with the end-of-year festive season, may challenge healthcare capacity and lead to an increase in the number of deaths. In combination with the increasing de-motivation to follow recommended protective measures, which has been reported by European countries, the ECDC believes there is a likelihood that even stricter measures may be needed in the near future to control the further spread of COVID-19.
In light of the continuing increase of cases and deaths associated with COVID-19, and after having already extended the targeted, temporary measures decided at the end of October 2020 from the end of November 2020 to December 20, 2020, the Federal Government and the 16 German federal states (Länder) on December 13, 2020, decided to impose additional measures until January 10, 2021. Most notably, in addition to the protective measures already in place, since December 16, 2020, shops have for the most part been closed, child care facilities are only offering emergency care and schools have generally been closed or the obligation to attend school has been suspended. Special rules, including limited relaxation measures over the Christmas holidays and stricter rules for New Year celebrations, will apply for the end-of-year festive season. The Federal Government and the 16 German federal states (Länder) plan to consult and decide on January 5, 2021, on the measures to be taken as of January 11, 2021, in light of the further development of COVID-19 infections.
On December 21, 2020, the European Medicines Agency (“EMA”) recommended granting the first conditional marketing authorization for a vaccine to prevent COVID-19. On the same date, the European Commission based on a fast-track decision-making process granted a decision on the conditional marketing authorization for the vaccine, which is expected to allow vaccination programs to be rolled out across the European Union (“EU”). In Germany, preparations for the administration of vaccines, as they become available, are ongoing. Among other matters, the German Minister of Health on December 18, 2020, presented a proposal for a regulation dealing with the order in which persons in Germany will be entitled to receive vaccinations against COVID-19, which prioritizes the most vulnerable groups.
Sources: European Centre for Disease Prevention and Control, Risk Assessment on COVID-19, 4 December 2020 (https://www.ecdc.europa.eu/en/current-risk-assessment-novel-coronavirus-situation); Bundesregierung, Merkel: “Wir sind zum Handeln gezwungen”, December 13, 2020 (https://www.bundesregierung.de/breg-de/suche/merkel-beschluss-weihnachten-1827396); Telefonkonferenz der Bundeskanzlerin mit den Regierungschefinnen und Regierungschefs der Länder am 13. Dezember 2020 – Beschluss (https://www.bundesregierung.de/resource/blob/992814/1827366/69441fb68435a7199b3d3a89bff2c0e6/2020-12-13-beschluss-mpk-data.pdf?download=1); Bundesregierung, “Kontakte vermeiden, wo immer es geht”, December 2, 2020 (https://www.bundesregierung.de/breg-de/aktuelles/ministerpraesidentenkonferenz-1824538); European Medicines Agency, EMA recommends first COVID-19 vaccine for authorisation in the EU, press release of December 21, 2020 (https://www.ema.europa.eu/en/news/ema-recommends-first-covid-19-vaccine-authorisation-eu); European Commission, Statement by President von der Leyen on the marketing authorisation of the BioNTech-Pfizer vaccine against COVID-19, December 21, 2020 (https://ec.europa.eu/commission/presscorner/detail/en/statement_20_2510); Die Bundesregierung, Spahn stellt Impfverordnung vor, Die Schwächsten zuerst schützen, December 18, 2020 (https://www.bundesregierung.de/breg-de/aktuelles/corona-impfverordnung-1829940).
EU Response to the COVID-19 Pandemic
On December 17, 2020, following the European Parliament’s consent on December 16, 2020, the Council of the European Union (the “Council”) adopted the regulation laying down the EU’s multiannual financial framework for 2021-2027. In line with the European Council’s proposal of July 2020, the regulation provides for a long-term budget of EUR 1,074.3 billion(at 2018 prices) for the EU member states (the “Member States”), including the integration of the European Development Fund. Together with the new recovery instrument of EUR 750 billion (the “EU Recovery Instrument” ), which is specifically aimed at addressing the consequences of the COVID-19 pandemic, the regulation will allow the EU to provide an unprecedented EUR 1.8 trillion of funding to be spent by 2027 to support recovery from the COVID-19 pandemic and the EU’s long-term priorities across different policy areas with new and reinforced priorities, including green and digital transitions.
To implement the EU Recovery Instrument, the EU’s own resources decision (the “Own Resources Decision”), which defines how the EU budget is financed and which was adopted by the Council on December 14, 2020 pursuant to the special legislative procedure applicable to EU budgetary matters, is required to be ratified by all Member States in accordance with their own constitutional requirements. Under the Own Resources Decision, the European Commission will be authorized, on an exceptional basis, to temporarily borrow up to EUR 750 billion (at 2018 prices) on the capital markets to address the consequences of the COVID-19 pandemic. Most of this funding will be channeled through the EUR 672.5 billion Recovery and Resilience Facility which will support public investments and reforms in Member States through grants and loans, helping them to address the economic and social impact of the COVID-19 pandemic, as well as the challenges posed by the green and digital transitions.
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