EU to push for state guarantees for travel vouchers instead of cash refunds

The European Commission will tell countries in the European Union to provide state guarantees for travel vouchers during the coronavirus pandemic, if they prefer people to accept the vouchers instead of cash refunds, according to a strategy document seen by Reuters.

The EU executive is due on Wednesday to present guidance and recommendations for member states on gradually lifting internal border restrictions, restarting travel and reviving the ailing tourism sector. Germany and other member states have called for a suspension of EU rules that force cash-drained airlines and the hospitality industry to offer full refunds for cancelled flights and visits instead of vouchers for future travel.

The European Commission on Friday asked Schengen countries to extend a restriction on non-essential travel to the EU for another 30 days, until June 15. While some EU and Schengen Associated States are taking preliminary steps towards easing the measures for fighting the spread of the pandemic, the situation remains fragile both in Europe and worldwide. This calls for continued measures at the external borders to reduce the risk of the disease spreading through travel to the EU. The lifting of travel restrictions should be phased: as underlined in the Joint European Roadmap on lifting containment measures, internal border controls will need to start being lifted gradually and in a coordinated manner before restrictions at the external borders can be relaxed in a second stage.

The Vice-President for Promoting our European Way of Life, MargaritisSchinas, said: “The overall objective of limiting the spread of coronavirus via reduced social interaction remains. Despite progress in many European countries, the situation worldwide is very fragile. It is imperative that any action taken is gradual, with different measures being lifted in different phases.” Commissioner for Home Affairs, Ylva Johansson underlined: “We need a phased and coordinated approach. Restoring the normal functioning of the Schengen area of free movement is our first objective as soon as the health situation allows it. Restrictions on free movement and internal border controls will need to be lifted gradually before we can remove restrictions at the external borders and guarantee access to the EU for non-EU residents for non-essential travel.

The travel restriction, as well as the invitation to extend it, applies to the ‘EU+ area’, which includes all Schengen Member States (including Bulgaria, Croatia, Cyprus, and Romania) and the 4 Schengen Associated States (Iceland, Liechtenstein, Norway, and Switzerland) – 30 countries in total. The Commission calls for a continued coordinated approach to the prolongation, as action at the external borders can only be effective if implemented by all EU and Schengen States at all borders, with the same end date and in a uniform manner.

However, the new report indicates that the Commission will tell member states to make vouchers more attractive to encourage customers to accept them. “To provide incentives for passengers and travellers to accept vouchers instead of reimbursement, vouchers should be protected against insolvency of the issuer and remain refundable by the end of their validity if not redeemed,” the draft document said.

“Insolvency protection needs to be assured at the national level and secured vouchers need to be accessible to all passengers and travellers,” it said. The document also said vouchers should be more flexible and widely transferable to other services available.

Reuters / Europa.EU / Politico 

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