Covid-19: What consequences on foreign direct investments?

Catherine Nommick, Esq.

In the context of the Covid-19 epidemic and its impact on the European Union’s economy, the European Commission published on March 26, 2020 a communication designed to alert Member States to the need to protect strategic European assets from foreign direct investments.

While reaffirming the European Union’s openness to foreign investments, which is essential to its growth and competitiveness, the European Commission encourages Member States to protect assets that cover the health needs of their citizens (in particular the production of medical and protective equipment, medical research activities) and, more generally, to safeguard Europe's strategic capacities.

Covid-19 and Telework: Reminder of the obligations imposed on businesses

Fabien Pomart, Esq.

Given the unprecedented health crisis that we are currently experiencing, one of the key measures imposed by the Government to contain the Covid-19 epidemic is the massive and imperative use of telework for all types of employment positions that allow it.

The legal framework for telework has become considerably more flexible in recent years to support the development of this work arrangement in France. As such, telework, whether on a regular or occasional basis, can be set up either by a collective agreement, or in the absence of such an agreement, by a charter drawn up unilaterally by the employer, after consultation with the Social and Economic Committee, if there is one; or finally – in the absence of such an agreement or charter – by common agreement between the employer and the employee.

Although the use of telework has been significantly streamlined, the employer remains subject to specific obligations that must be complied with.

Covid-19 and Telework: Data protection

Laure Marolleau, Esq.

The Covid-19 pandemic has prompted many companies to implement teleworking solutions. The implementation of this type of working method requires that rules be duly followed to guarantee the security of information systems and processed data.

The French Data Protection Authority has published recommendations to help secure personal data in this context.

Covid-19: Extension of deadlines for the approval of the accounts of private law businesses

Florence Grangerat, Esq.

Adopted in furtherance of the Emergency Law No. 2020-290 of March 23, 2020 to deal with the Covid-19 epidemic, Ordinance No. 2020-318 dated March 25, 2020 adapting the rules relating to the preparation, closing, audit, review, approval and publication of accounts and other documents and information that private law legal persons and entities without legal personality are required to file or publish in the context of the covid-19 epidemic has introduced temporary exceptional derogations, particularly with regard to the approval of accounts.

DataJust: Towards a predictive Justice?

Charlotte Desfontaines, Esq.

Decree of March 27, 2020 provides for the implementation of an algorithm called DataJust for a period of two years. This algorithm aims in particular at developing an indicative baseline of compensation for personal injuries.

This baseline system will be made available not only to judges, but also to lawyers, insurers and, above all, victims, in order to assess the amount of compensation to which the latter may be entitled, with the aim of encouraging out-of-court settlements.

Experts' Contributions

We are pleased to publish two contributions authored by Renaud Roquebert and Clémence Bauché,  respectively Managing Partner and Associate at LightHouse LHLF - Law Firm, a French law firm specialized in tax and customs law.

Impacts of the covid-19 sanitary crisis on the financing methods: Focus on the debt write-offs

Renaud Roquebert and Clémence Bauché, Esq.

In the current context of the Covid-19 crisis, companies facing difficulty are looking for efficient solutions to limit the financial consequences arising from this crisis. If they can already benefit from payment facilities and other fiscal measures urgently adopted by the French Government, existing mechanisms improving their cash flow can also be put in place.

These days, where many activities have partially, or even totally, shutdown, debt waivers may be an interesting option for companies in order to maintain sales relationships and ensure the continuity of their activity as much as possible. However, before implementing such a mechanism, in order to prevent from any reconsideration by the tax authorities in the event of future tax audits, two main issues should / must be analyzed: (ii) the justification of the commercial nature of the waiver and (iii) its consequence, the partial or even total exclusion of this debt waiver from the charges of the supporting company.

Read the contribution

Impacts of the Covid-19 sanitary crisis on the “Quick Fixes” Directive

Renaud Roquebert and Clémence Bauché, Esq.

Businesses are now focusing on implementing the exceptional tax measures taken by the Government in order to optimally manage their cash flow. However, it should not be overlooked the fact that the Covid-19 crisis may have significant consequences regarding specific existing tax rules.

As a result, we focus our attention below on the consequences that the current health crisis may have on the application of the so-called « Quick Fixes » VAT rules applicable since January 1, 2020.

As a reminder, the « Quick Fixes » rules are based on three main points: (i) the call-of stock regime, (ii) the exemption of intra-Community supplies of goods and related proof of transport rules and (iii) the chain transactions.

Read the contribution

International Perspective

The Covid-19 pandemic is a human tragedy and a global health crisis that affect billions of people worldwide. It also has an increasingly devastating impact on the global economy. To try and mitigate the adverse economic and financial effects of Covid-19, governments all around the world are taking steps and measures to support jobs and help businesses.

The World Law Group, a network of 59 leading independent law firms with more than 400 offices in major commercial centers worldwide, to which our Firm belongs, has centralized all the articles and insights of its members on the local impact of Covid-19 and the measures to support businesses adopted by the various countries where World Law Group member firms are present.

Visit the WLG Global COVID-19 Resource Center