The EU investment framework for business will be more flexible due to adverse effects of coronavirus

Date

2020 03 12

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The Ministry of the Economy and Innovation, together with the Lithuanian Business Support Agency (LVPA), has foreseen that due to coronavirus-related risks for business and the economy flexibility will be ensured in the implementation of the EU investment requirements for business.

It was agreed to ensure adequate and flexible action in case the coronavirus prevents project promoters from taking part in planned major events abroad or in case required equipment is not manufactured or delivered to businesses in time. Each enterprise project will be considered individually and the project activities will be extended.

The Government, together with the Ministry of the Economy and Innovation, is inviting the associated business structures to report each specific situation in the business sectors and offer potential proposals concerning the impact of COVID-19 on the implementation of EU investments in the short and longer term.

The consequences of COVID-19 for individual EU investment measure projects can be compared to a  force majeure case, where contractual obligations cannot be fulfilled due to circumstances the occurrence of which cannot be controlled and reasonably foreseeable at the time of the contract conclusion and it is not possible to prevent the occurrence of those circumstances or their consequences. However, the circumstances that will make it impossible to fulfil the contractual obligations are temporary. The parties should be released from liability only for a period that is reasonable given the impact of circumstances on the contract performance.

EU investment agencies will ensure continuous customer consultancy and information provision as well as online training.

The Ministry of the Economy and Innovation will make proposals with EU investment agencies to the Ministry of Finance (lead authority) concerning the reduction of administrative burden on businesses in the case of COVID-19 in order to reduce negative impact on the pace of the implementation of EU investments.