The European Parliament (EP) calls for European Union (EU) funds to be used to compensate for the damage caused by bankruptcy of Thomas Cook.
This Thursday, 24 October, the EP proposed a series of measures to help the 600 tourists affected, the thousands of workers who lost their jobs and SMEs that are facing serious financial difficulties due to the bankruptcy of Thomas Cook, the second largest tour operator in the world.
And, as the Parliament itself points out, the end of Thomas Cook had a «relevant impact on Portugal, especially on the Algarve and Madeira».
The end of the activity of this British company, which managed hotels, tourist resorts and airlines in 16 countries and had 19 million customers a year, caused "serious economic damage to the tourism sector, employment and local communities", says a resolution today approved in plenary by a large majority.
The EP asks the European Commission to identify and allow quick access to EU financial instruments that can compensate for the damage caused to the sector.
Member States affected by the Thomas Cook bankruptcy should make full use of the possibilities of the European Globalization Adjustment Fund, for example through collective applications from SMEs, and resort to the instruments provided by the European Social Fund, say MEPs.
Tourism services in regions dependent on the sector, and hotels in particular, already had plenty of reservations for the next tourist season before the collapse of Thomas Cook, notes the EP, calling on Member States to help businesses cope with the negative impact of this situation.
The European Assembly also urges the Commission and the Member States to ensure that the wages and pension benefits that are owed to workers affected by bankruptcy are guaranteed to them.
They should also consider, 'only as a last resort', the adoption of State aid measures that could mitigate the negative economic impact on businesses, cities, regions and tourist destinations, as well as the serious consequences for employment.
The EP wants the competent authorities to carry out 'an analysis of the reasons behind the bankruptcy of Thomas Cook, taking into account that the negative changes in the company's financial situation were already known to the UK authorities', in order to determine whether they could have been taken. Preventive measures to avoid its sudden collapse.
This analysis should help to predict future crises and define policies aimed at minimizing risks in a sector so important to the EU.
"The crisis resulting from the bankruptcy of the Thomas Cook Group is not an isolated event", notes the resolution, noting that 32 airlines have gone bankrupt since the beginning of 2017.
The EP asks the Commission to consider taking additional measures to maintain a high level of protection for consumers and workers in the event of bankruptcy. Better monitoring of the financial situation of airlines by national supervisory authorities is also needed to prevent passengers from falling prey to this type of bankruptcy, he adds.
The European assembly also urges the Council, where national governments are represented, to adopt as soon as possible its position on the amendment of the regulation on air passengers' rights, on which the EP has been ready to negotiate since 2014.
MEPs propose mandatory mechanisms to maintain the current level of protection for passengers in the event of insolvency or bankruptcy, namely through the creation of guarantee funds or the conclusion of insurance contracts by airlines that guarantee assistance, reimbursement, indemnity and re-routing.
The EP also argues that passengers who have booked a single service, such as a single flight, should enjoy the same protection as passengers who have booked a package trip, bearing in mind that consumers are increasingly booking only the flight.
MEPs want "harmonization of the highest standards of consumer rights in the transport, accommodation and tourism sectors".
The EP calls for the creation of a common EU strategy for the tourism sector and the introduction of a specific budget line for this sector in the next draft EU budget, as requested for the 2021-2027 multiannual financial framework.
Tourism directly and indirectly generates 10,3% of the EU-28's total GDP, a figure that is projected to increase to 11,2% of GDP in 2027.
Thomas Cook's bankruptcy had a relevant impact in Portugal, in particular in the Algarve and Madeira.
Comments