Macron gives Albania and North Macedonia hope on EU talks

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Macron said the European Commission "did a remarkable job" in coming up with a proposal to reform the bloc's enlargement process | Cristof Stache/AFP via Getty Images

Macron gives Albania and North Macedonia hope on EU talks

French president praises revamped enlargement plan.

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2/15/20, 1:57 PM CET

MUNICH — French President Emmanuel Macron on Saturday gave the clearest sign to date that he is ready to drop his objections to North Macedonia and Albania starting EU membership talks.

Macron said the European Commission “did a remarkable job” in coming up with a proposal to reform the bloc’s enlargement process, taking into account his own misgivings. The next step would be to look at the Commission’s assessment of the two countries’ progress in reports due to be released next month, he said.

“We must see what the Commission will say on the state of the advances we expect to take place in Albania and North Macedonia,” Macron said in a question-and-answer session at the Munich Security Conference, an annual gathering of politicians, military leaders and diplomats from around the world.

“If the results are positive and trust is established  we should be in a position to open, afterward, negotiations,” he added.

The Commission has already said on multiple occasions that the two countries have met the criteria to begin membership talks. But France and other EU members have previously taken issue with such assessments.

Without naming any countries, Macron also accused other EU governments of “great hypocrisy” in their attitude to would-be members from the Western Balkans. He said those governments publicly encouraged the start of membership talks while declaring privately that the prospective members would not meet EU standards for many years to come.

“I prefer realpolitik here. To anchor the Balkans [to the EU] we have to invest there… instead of saying we are opening negotiations, with a lot of hypocrisy because all those who say we need to open negotiations with Albania and North Macedonia then say, ‘But be careful, they’re not suitable for membership for another 10 or 15 years.’ We’re not reasonable,” Macron said.

Authors:
Rym Momtaz 
rmomtaz@politico.eu 

‘Go back to your cave’: Alibaba’s European expansion triggers anger in Liège

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LIÈGE, Belgium — Welcome to the staging ground for Alibaba’s European surge.

Over the past year, the Chinese e-commerce giant has been quietly transforming this mid-sized Belgian city into an international transport hub and European logistics center — complete with an airport that operates 24/7 importing products from China and dispatching them around the bloc.

The investment is a key part of Alibaba’s strategy to compete against U.S. rival Amazon and others in one of the world’s richest markets. It’s already brought clear economic benefits to Belgium’s fifth-largest city — a once-thriving industrial center where many hope that Alibaba can help revive the economy.

Yet as the firm’s footprint expands, with plenty of help from the Belgian government, it’s also running into home-grown opposition. A local grassroots movement that calls itself “Watching Alibaba” argues that the costs of hosting the Chinese guest — which it says include more frequent flyovers, snarled traffic, growing air pollution and jammed postal centers — far outweigh the benefits.

“I don’t want to live in a city where everybody is unable to sleep properly because of thousands of planes flying over us every night,” said François Schreuer, a founding member of Watching Alibaba during a protest in January that gathered some 50 people in central Liège.

“At the very least, we demand a stop to the development of the airport,” added Schreuer, who’s also a member of the local green party, Vega.

The protesters — who say residents weren’t sufficiently consulted on the scale of plans before Liège was designated as the firm’s European hub — are unlikely to scare off the company with placards urging Alibaba to “go back to your cave.”

The investment is the result of years of fierce jockeying between countries during which Belgium managed to out-lobby other contenders for Alibaba’s favor, namely Germany and the Netherlands.

But the pushback is giving Alibaba a taste of the “techlash” that has been plaguing Silicon Valley companies for years in Europe.

In 2018, local protests brought Google’s plans for a vast Berlin campus to a halt, while Apple stores in France have been the site of “die in” protests by taxation activists furious over the firm’s optimization schemes.

Once mainly an issue for U.S. firms, that ire is now being directed at Chinese companies as well.

Alibaba insists it is working together with the locals, and has no plans to slow down or scale back its ambitions.

“Our investment at Liège airport is an opportunity for local businesses, and we look forward to partnering with them to market and sell Belgian and European products to China and other global markets,” said Derek Sun, the manager in charge of the project in Alibaba’s logistics arm Cainiao.

Alibaba vs. Amazon

For Alibaba, which had about a fifth of Amazon’s global revenue in 2018, the Liège investment will allow it to compete against the U.S. rival in the midst of a U.S.-China trade dispute and a wobbly economy back home.

So far in Europe, Alibaba has been able to challenge Amazon on price but not on delivery speed.

Liège is set to change that. By providing a portal into Western Europe’s most prosperous markets in France, Germany, the U.K. and the Netherlands, Alibaba hopes to be able to deliver products around the bloc in a matter of hours. To satisfy demand for ever-cheaper goods, Alibaba also pledges to ship anything over from China to Europe in just 72 hours.

The starting signal for this expansion was given in 2018, when Belgium became the first European country to sign up for Alibaba’s trade initiative, the Electronic World Trade Platform (“eWTP”).

The deal allows small and medium-sized Belgian businesses to trade on Alibaba’s global platform. In return, Alibaba’s logistics arm, Cainiao, pledged to invest €75 million-€100 million to build a warehouse on a 220,000 square-meter area in Liège airport by 2021 that is expected to create 900 direct jobs.

In addition, plans are underway to transform the area around Liège airport into a bigger logistics and warehouse hub. But first, the airport needs to demolish government-subsidized roads and water, drainage and electricity infrastructure to make way for Alibaba’s warehouses.

But the Alibaba deal was many years in the making. In an effort to attract Chinese investment, the Belgian government pulled out all the stops, sending no fewer than 600 delegates to China last November for a visit to Alibaba’s Shanghai offices.

Princess Astrid, the Belgian king’s sister, and then-Foreign Minister Didier Reynders were among the attendees. Even King Philippe, who visited China in 2015, was last year photographed shaking hands with Alibaba’s former CEO Jack Ma at the World Economic Forum in Davos, Switzerland.

Both sides are touting the Liège deal as an example of the benefits of China-EU ties.

When the expansion is completed in 2021, it’s expected to create potentially thousands of jobs thanks to increased economic activity, in addition to the 900 jobs at the airport.

That’s a major boon for a region that has been struggling to recover from the collapse of heavy industry starting in the 1960s, and where the unemployment rate — which hit 23.4 percent in 2019, according to the Forem job center — is higher than in other parts of French-speaking Belgium.

Michel Kempeneers of Awex, the Walloon export and foreign investment agency, estimates that the deal with Alibaba will bring in around €300 million in the long term.

Bigger than Frankfurt?

But the Watching Alibaba contingent still isn’t satisfied. On one hand, protesters are concerned about the quality of jobs that Alibaba is bringing in, wary of reports about tough working conditions at Amazon fulfillment centers.

On the other, they warn in particular about the environmental impact of Alibaba’s arrival in Liège — echoing calls across Europe and among EU lawmakers to give much greater scrutiny to the environmental impact of home-delivery services.

“We don’t want Alibaba, Amazon or any other e-commerce here. They are incompatible with the fight against global warming,” added Schreuer said.

There is no doubt that Alibaba is about to have a powerful transformative effect on Liège.

In 2019, the city’s airport transported 902,480 tons of goods. This figure will grow exponentially after Alibaba’s logistics hub is up and running, partly thanks to the fact that Liège is one of the few airports in Europe that operates 24 hours a day, seven days a week. It is only a matter of time until it will surpass Europe’s largest cargo airports; in 2018, Frankfurt airport processed over 2 million tons of cargo, and Paris’ Charles de Gaulle 1.98 million tons.

To deal with the increased activity, the airport is going on a hiring spree. Customs have already hired 50 more staff to deal with the influx of packages in Liège, and they plan to hire 50 more for a total of 300 staff.

But even with more manpower, the sheer volume of packages is overwhelming for customs to deal with. In 2018, Belgian customs processed 9 million packages. After the country signed the deal with Alibaba, that number rose to 360 million packages. Customs are looking at how technology, such as artificial intelligence, could help recognize dangerous items such as poisonous toys or counterfeit medicines, according to Kristian Vanderwaeren, the administrator general of Belgian customs.

But the locals say the problem lies at the core of a business model that relies on carbon-belching trucks and planes to deliver cheap goods in record time to fickle consumers.

Currently, they point out that most of the planes and trains coming in from China return empty, while most of the packages being dispatched are low value.

Under the terms of the deal agreed in 2018 with Alibaba, Belgium hopes to fill those planes with local goods. The idea is that high-quality Belgian foods, pharmaceuticals and baby products that have gone through European quality controls will be snapped up by a growing Chinese middle class.

Yet that vision of reciprocal trade has yet to materialize. And Europeans are increasingly concerned about the risk of counterfeit and dangerous items coming in from China, with a 2018 study showing that more than half of unsafe products in Europe came from the Middle Kingdom.

In response to such criticism, an executive in Alibaba’s logistics arm said the firm is committed to sustainability and following EU environmental rules.

“We will continue to drive environmental sustainability by innovating and improving our technologies and processes,” said Alibaba’s Derek Sun.

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Ireland to ask for bail-out

Ireland to ask for bail-out

Eurozone ministers discussing Irish aid.

By

Updated

Brian Lenihan, Ireland’s finance minister, has confirmed that Ireland will ask for a multibillion euro loan to help the country stabilise its banking sector.

Speaking on Irish radio this afternoon, Lenihan said: “I will be recommending to the government that we should apply for a programme and start formal applications.”

Lenihan declined to say how much money Ireland would be asking for and played down suggestions that it could be as much as €70-80 billion as has been reported.

He admitted that the loan would total “tens of billions” of euros, although not a “three figure sum”.

He stressed that the Irish government would not necessarily draw down all the money which could be in the form of a contingency fund.

Lenihan said: “The point I want to make is that, whatever figure is arrived at, it will not necessarily be drawn down. It is a figure that will illustrate the kind of support that is available the Irish banking system. Not all of the money will go in at all. It is a standby fund.”

Until last week Dublin had denied that it would need to seek financial support from the EU and IMF.

However, on Thursday officials admitted for the first time that they might apply for an aid package.

Fact File


The minister also welcomed comments by Nicolas Sarkozy, France’s president, saying that Ireland would not have to increase its corporation tax rate in order to receive the aid.

Speaking at a summit of NATO leaders in Lisbon on Saturday, Sarkozy said: “When you have to tackle a deficit, you have two levers, spending and taxes. I can’t believe that our Irish friends, in full sovereignty, won’t look at both since they have more room for manoeuvre given that their tax rates are lower. But that’s not a demand or a condition, just an opinion.”

Ireland’s corporate tax rate is 12.5%, one of the lowest in the EU. French and German politicians have frequently accused Ireland of predatory tax competition.

Eurozone finance ministers held a telephone conference call at 18:00 Brussels time to discuss Ireland’s request. They are expected to issue a statement later tonight.

Ireland is expected to receive assistance from its EU and eurozone partners and the International Monetary Fund to support its banking sector. Ireland’s banks, which ran up huge losses following the collapse in a construction boom, have been relying heavily on liquidity support from the European Central Bank (ECB).

The ECB wants to cut back on support as part of efforts to getting the banking sector operating on normal terms.

The cost of holding Irish government debt has soared to 8-9% in recent weeks as international investors have grown increasinlgy sceptical that the Irish government would be able to meet its debts. This has increased the pressure on the balance sheets of Irish banks and strengthened the need for international assistance to recapitalise the banks.

 

 

 

 

 

Authors:
Ian Wishart 

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Hamann 'astonished' by Liverpool's furlough decision during coronavirus pandemic

After Jamie Carragher criticised the Reds’ decision to furlough staff, another club veteran has also hit out

Dietmar Hamann is the latest former Liverpool player to criticise the club’s decision to place staff impacted by the Premier League’s suspension on furlough, stating they are going against their values by doing so.

With the coronavirus pandemic causing a prolonged hiatus for football, Liverpool announced their intention to furlough non-playing staff on Saturday.

Members of the workforce that are affected can claim 80 per cent of their wages – up to £2,500 a month – from the United Kingdom government, though Liverpool will top up any shortfall in their pay.

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Liverpool became the fifth Premier League club to announce the measures, with all of them attracting criticism as detractors feel profit-making businesses owned by wealthy individuals or groups should not be receiving assistance from the British taxpayer to cover wage costs.

Hamann’s former Liverpool team-mate Jamie Carragher slammed the club, claiming the move will have lost them “respect and goodwill”, and now the German has hit out.

“Astonished by the news that @LFC takes advantage of the furlough scheme to claim 80 per cent of non-playing staff wages back off the government,” he wrote on his official Twitter account.

“That’s not what the scheme was designed for. Contrary to the morals and values of the club I got to know.”

Liverpool had previously received praise for Jurgen Klopp’s displays of compassion at the start of the pandemic, while Jordan Henderson is reportedly spearheading an attempt from Premier League players to raise funds for the National Health Service.

But Saturday’s news has attracted widespread scorn, with it coming less than six weeks after the club announced pre-tax profits of £42 million for the year ending May 2019.

Former Liverpool striker Stan Collymore was particularly critical in his assessment of the decision. 

“I don’t know of any Liverpool fan of any standing that won’t be anything other than disgusted at the club for furloughing staff. It’s just plain f*cking wrong,” he said.

“Fellow football fans, furlough is for small business staff to keep those small businesses from going bump! Every Premier League owner has serious cash, and make money from skyrocketing values of clubs, so what aren’t you getting about YOUR owners dipping into THEIR pocket?”

Democrats seize on Trump's firing of intelligence community watchdog

Democrats are pouncing on President TrumpDonald John TrumpPelosi eyes end of April to bring a fourth coronavirus relief bill to the floor NBA to contribute 1 million surgical masks to NY essential workers Private equity firm with ties to Kushner asks Trump administration to relax rules on loan program: report MORE over his Friday night firing of the intelligence community inspector general, casting it as a “chilling” warning that the White House is seeking to further politicize the historically nonpartisan intelligence agencies.

Democrats unleashed an avalanche of criticism after Trump announced he is firing Michael Atkinson, who had served as the intelligence community’s watchdog since May 2018 and was the first to raise the whistleblower complaint over Trump’s dealings with Ukraine that ultimately led to Congress’s impeachment proceedings.

Trump detractors on Capitol Hill were quick to cast Atkinson’s dismissal as a politically motivated act of retribution meant to deter future criticism of the White House.

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“The shameful late-night firing of Inspector General Atkinson is a brazen act against a patriotic public servant who has honorably performed his duty to protect the Constitution and our national security, as required by the law and by his oath,” said Speaker Nancy PelosiNancy PelosiPelosi eyes end of April to bring a fourth coronavirus relief bill to the floor Pelosi, Democrats using coronavirus to push for big tax cuts for blue state residents US watchdog vows ‘aggressive’ oversight after intel official fired MORE (D-Calif.). “This latest act of reprisal against the Intelligence Community threatens to have a chilling effect against all willing to speak truth to power.”

“The work of the intelligence community has never been about loyalty to a single individual; it’s about keeping us all safe from those who wish to do our country harm. We should all be deeply disturbed by ongoing attempts to politicize the nation’s intelligence agencies,” added Sen. Mark WarnerMark Robert WarnerDemocrats seize on Trump’s firing of intelligence community watchdog Trump fires intelligence community watchdog who flagged Ukraine whistleblower complaint Hillicon Valley: Thousands of Zoom recordings exposed online | Google shares location data to counter virus | Dem senator pushes jobless benefits for gig workers | Twitter takes down 20,000 fake accounts MORE (D-Va.), the vice chairman of the Senate Intelligence Committee.

Other Democrats pointed to the timing of Trump’s announcement, accusing him of using the burgeoning coronavirus crisis as a way to draw attention away from Atkinson’s firing. 

“At a time when our country is dealing with a national emergency and needs people in the Intelligence Community to speak truth to power, the President’s dead of night decision puts our country and national security at even greater risk,” said Rep. Adam SchiffAdam Bennett SchiffTrump defends firing of intel watchdog, calling him a ‘disgrace’ Democrats seize on Trump’s firing of intelligence community watchdog Trump fires intelligence community watchdog who flagged Ukraine whistleblower complaint MORE (D-Calif.), the chairman of the House Intelligence Committee. 

“President Trump is using a global pandemic as cover to exact political revenge against the Intelligence Community Inspector General who revealed his misconduct,” Sen. Elizabeth WarrenElizabeth WarrenDemocrats seize on Trump’s firing of intelligence community watchdog Biden says his administration could help grow ‘bench’ for Democrats Overnight Health Care: CDC recommends face coverings in public | Resistance to social distancing sparks new worries | Controversy over change of national stockpile definition | McConnell signals fourth coronavirus bill MORE (D-Mass.) added Saturday. “Firing IG Atkinson is corruption, and it threatens our national security during a global crisis.”

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The surprise firing also drew calls from some Democrats to implement efforts to protect future inspectors general, such as establishing term limits.

“Presidents shouldn’t be able to fire Inspectors General at will,” tweeted Sen. Chris MurphyChristopher (Chris) Scott MurphyDemocrats seize on Trump’s firing of intelligence community watchdog Testing struggles emerge as key hurdle to reopening country Democratic senators call on domestic airlines to issue cash refunds for travelers MORE (D-Conn.). “It’s time for Congress to establish terms of office (5 years?) for all IGs, so capricious, vindictive, paranoid chief executives can’t engage in nonsensical political purges.”

While some of Trump’s media allies, such as Judicial Watch’s Tom Fitton, praised Atkinson’s firing as “cleaning house,” congressional Republicans largely refrained from defending the move online Saturday.

Trump nominated Atkinson for his role in 2017 after he had served 16 years at the Justice Department. One of the focuses of his job was to probe activities falling under the purview of the director of national intelligence and reviewing whistleblower complaints from within the intelligence community.

Atkinson came out against then-acting Director of National Intelligence Joseph MaguireJoseph MaguireDemocrats seize on Trump’s firing of intelligence community watchdog Trump fires intelligence community watchdog who flagged Ukraine whistleblower complaint Former intelligence chiefs slam Trump for removing officials MORE’s decision to withhold the whistleblower complaint from Congress, pitting him against the White House’s desire to keep the complaint out of the hands of congressional investigators. 

The firing will take effect 30 days from Friday, the day Trump sent a notice informing Congress of Atkinson’s dismissal, and the president said he will submit to the Senate his nominee for a replacement “at a later date.”

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Wisconsin Democrats chair bashes Supreme Court decision on voting: 'I am about to explode'

The chair of Wisconsin’s state Democratic Party on Monday blasted a U.S. Supreme Court decision that required all absentee ballots be posted by Tuesday to be counted in the state’s election.

Ben Wikler tweeted Monday afternoon that he was “about to explode” after the Supreme Court reversed a lower court’s ruling ordering the state to accept absentee ballots sent any time before April 13, a move that was initially meant to expand participation in the primary during the coronavirus outbreak.

“I am about to explode. The five GOP US Supreme Court justices just overruled two lower courts and shut off extended absentee voting in Wisconsin,” he tweeted.

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“The Supreme Court of the United States legislated from the bench today, following Trump team’s orders and writing a new election law to disenfranchise untold thousands of Wisconsin voters and consign an unknown number of Wisconsinites to their deaths,” he added. “This is now etched into history. Donald TrumpDonald John TrumpOvernight Health Care: US hits 10,000 coronavirus deaths | Trump touts ‘friendly’ talk with Biden on response | Trump dismisses report on hospital shortages as ‘just wrong’ | Cuomo sees possible signs of curve flattening in NY We need to be ‘One America,’ the polling says — and the politicians should listen Barr tells prosecutors to consider coronavirus risk when determining bail: report MORE doesn’t care how many of his followers die—and how many people they infect and kill—if it helps him maintain power.”

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A lower court had previously ruled that the state would accept any ballots postmarked up until April 13. The state will now only accept ballots postmarked by Tuesday’s date, April 7, and received in the mail by April 13.

Justice Brett KavanaughBrett Michael KavanaughWisconsin Democrats chair bashes Supreme Court decision on voting: ‘I am about to explode’ Supreme Court blocks Wisconsin from extending absentee voting deadline A woman accuses Biden of sexual assault — and few liberals listen MORE, writing for the majority, explained that allowing such an extension “fundamentally alters the nature of the election.” 

Wikler’s remarks come in response to a whirlwind of court decisions and moves from state officials affecting the Wisconsin primary, which is set for tomorrow. Gov. Tony Evers (D) previously issued an executive order delaying the primary due to coronavirus concerns, a move which was also reversed by the state’s Supreme Court. 

 

Teddy Roosevelt's great-grandson weighs in on dismissal of Navy captain: 'Crozier is a hero'

Tweed Roosevelt, the great grandson of former President Theodore Roosevelt, said the captain of an aircraft carrier who was relieved from command following the ship’s struggle with a coronavirus outbreak is “a hero.”

Capt. Brett Crozier, who led the USS Theodore Roosevelt in Guam, sent a letter that was leaked to the media pleading for permission to relieve his crew, dozens of whom tested positive for COVID-19. 

“In this era when so many seem to place expediency over honor, it is heartening that so many others are showing great courage, some even risking their lives. Theodore Roosevelt, in his time, chose the honorable course,” Tweed Roosevelt said in an op-ed in The New York Times. “Captain Crozier has done the same.”

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Navy Secretary Thomas Modly announced Crozier’s removal Thursday at a Pentagon briefing, noting, “It is not an indictment of character, but rather of judgment.” Defense Secretary Mark EsperMark EsperSunday shows preview: As coronavirus spreads in the U.S., officials from each sector of public life weigh in Trump says 1,000 additional military personnel to deploy to NY Teddy Roosevelt’s great-grandson weighs in on dismissal of Navy captain: ‘Crozier is a hero’ MORE backed his firing, according to Reuters.

After Crozier’s letter leaked, Navy officials announced they would offload 2,700 sailors by Friday. 

“Perhaps this was not the best approach for his career, but it got results,” Tweed Roosevelt said.

Tweed Roosevelt said Crozier showed judgement similar to that of Theodore Roosevelt when he was a commander during the Spanish-American War, which resulted in hundreds of deaths from diseases such as yellow fever and malaria.

After Crozier’s firing, House Armed Services Committee Chairman Adam SmithDavid (Adam) Adam SmithTeddy Roosevelt’s great-grandson weighs in on dismissal of Navy captain: ‘Crozier is a hero’ Pentagon gets heat over protecting service members from coronavirus Overnight Defense: Aircraft carrier captain removed from duty after pleading for help with outbreak | Trump to expand use of defense law to build ventilators | Hospital ships receiving few patients MORE (D-Wash.) and three subcommittee chairmen said Saturday they were “concerned about the lack of guidance from Department of Defense leadership” and that Esper is “forcing” commanders “to make decisions on matters outside of their expertise while under immense pressure.”

Trump officials struggle to get coronavirus-relief loans out the door

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The Trump administration is struggling to work out the kinks of a coronavirus small-business loan program after a chaotic start Friday. 

Some banks say they are unable to access Small Business Administration (SBA) platforms, while industry leaders say there are unanswered questions about applying for loans and how to take advantage of them.

On Monday, the SBA loan processing platform crashed and was down for hours, preventing lenders from processing any loans, Bloomberg News reported. The system was back up Monday afternoon.

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Restaurants and startups are among those who have had trouble navigating the program.

“We told our restaurant owners when the bill was passed to begin setting up their files and putting the calls in to their personal banks so they can hit the ground running. Banks are still identifying if this government program makes sense for them to participate or they still have unanswered questions before they will jump in,” Sean Kennedy, National Restaurant Association executive vice president of public affairs, told The Hill.

The restaurant industry has been one of the hardest hit, as tens of millions of Americans are told to stay home.

The Treasury Department and SBA last week rolled out applications for the $349 billion Paycheck Protection Program (PPP), designed to provide loans for small businesses to meet payroll and other basic expenses during the coronavirus pandemic.

Bank and credit union employees are vetting, approving and processing the applications, which totaled 78,000 loan requests for $22 billion as of Sunday morning.

“SBA officials emphasized that they have been balancing security and speed in providing access to the systems that allow banks to make PPP loans,” the American Bankers Association said after a meeting with Treasury Secretary Steven MnuchinSteven Terner MnuchinOn The Money: Trump officials struggle to get relief loans out the door | Dow soars more than 1600 points | Kudlow says officials ‘looking at’ offering coronavirus bonds Trump officials struggle to get coronavirus-relief loans out the door Kudlow says administration ‘looking at’ offering coronavirus bonds MORE and other Treasury and SBA officials Sunday.

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A day earlier, the restaurant association had a call with Treasury officials and received a commitment that they will do everything they can to work with the industry to provide solutions to the loan program issues.

“As we look at the SBA loan programs coming out right now, what’s clear to us is that it’s a Band-Aid that’s getting smaller against a wound that’s getting bigger,” Kennedy said. “There are still a lot of unanswered questions on how certain small restaurant chains can take advantage of these given the way they’re organized.” 

He added that restaurants are having issues with the rules on when the loan has to be taken out, when the money has to be used by and details about the percentage of the loan that can be spent on non-payroll costs.

For restaurant franchises, it’s a mixed bag. 

“If you’re a smaller franchisee, and your brand is on the SBA Franchise registry, and you can find a bank who is participating in PPP, you are getting money and the program is working as intended,” said Matt Haller, International Franchise Association senior vice president of government relations and public affairs.

Other franchises have already been denied loans.

“If you’re a franchisee and your brand isn’t on the franchise registry, government bureaucrats are rejecting you even if your bank accepts the loan application. It’s clear discrimination purely on the basis of operating under a brand rather than as an independent business,” Haller said.

The Treasury Department and SBA did not respond to requests for comment.

Startups backed by venture capital (VC) firms are having trouble, particularly about whether they are eligible for loans and if the number of their employees has to include employees of its venture capital investor.

“Big problems early on were bank participation — mostly resolved — and limiting loans to existing customers — in progress. Still open questions about eligibility for VC-backed startups due to affiliation rules,” said John Lettieri, CEO of the Economic Innovation Group, in an email to The Hill.

Wells Fargo began taking loan applications on Monday and the bank said it will focus on small businesses with fewer than 50 employees. The program is for firms with fewer than 500 workers on payroll.

“We are committed to helping our customers during these unprecedented and challenging times, but are restricted in our ability to serve as many customers as we would like under the PPP. While all businesses have been impacted by this crisis, small businesses with fewer than 50 employees and nonprofits often have fewer resources. Therefore, we are focusing our efforts under the Paycheck Protection Program on these groups,” Wells Fargo CEO Charlie Scharf said in a statement Sunday.

Mnuchin on Friday touted Bank of America’s approval of loans in an attempt to quell concerns about the program’s launch. The bank said Monday it had received more than 178,000 applications worth almost $33 billion, which is about 9.4 percent of the total available in the program. 

Hundreds of thousands of small businesses are expected to compete for the loan pool and the administration has stressed they are working to get the loans to businesses as quickly as possible.

“All indications confirm the money is being allocated very quickly, but many businesses are unclear as to when they’ll actually receive it,” Lettieri said.

Aircraft carrier commander removed by Navy tests positive for COVID-19: NYT

 

Capt. Brett E. Crozier, whom the Defense Department removed from command of the aircraft carrier U.S.S. Theodore Roosevelt after he raised alarms about a novel coronavirus outbreak onboard, has tested positive for the virus himself, according to The New York Times, citing two Naval Academy classmates and friends of Crozier’s.

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Crozier, who was removed from command Thursday, reportedly had begun manifesting symptoms of the virus before his firing. His removal followed a leak to the press of a letter he sent his Navy superior detailing high-level failures to provide the carrier with the necessary resources to handle the outbreak.

Acting Navy Secretary Thomas Modly said he had lost confidence in Crozier’s ability to command the ship after Crozier emailed the letter through an unclassified system to between 20 and 30 people, saying it caused unnecessary dismay and undermined the chain of command. President TrumpDonald John TrumpCampaigns face attack ad dilemma amid coronavirus crisis Outgoing inspector general says Trump fired him for carrying out his ‘legal obligations’ Trump hits Illinois governor after criticism: ‘I hear him complaining all the time’ MORE endorsed the firing in a Saturday press briefing, saying Crozier “shouldn’t be talking that way in a letter.”

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Defense Secretary Mark EsperMark EsperAircraft carrier commander removed by Navy tests positive for COVID-19: NYT Pentagon staffers told to come to work with face coverings: report Esper faces tough questions on dismissal of aircraft carrier’s commander MORE said on CNN’s “State of the Union” that an investigation into Crozier’s actions was ongoing.

“All the services at times relieve commanders without the benefit of an investigation upfront because they’ve lost confidence in them,” he said. “It’s certainly not unique to the Navy.”

Reports of Crozier’s diagnosis will likely fuel what was already vocal criticism of the Navy’s handling of both the aircraft carrier outbreak and his firing, the Times reported. Footage of sailors aboard the Roosevelt applauding Crozier as he left the carrier went viral after his removal.

A Navy spokesperson told the Times that Crozier has been reassigned to the headquarters of the Naval Air Forces Pacific command in San Diego, where the Roosevelt is homeported, but said he must first complete a quarantine period. Two of Crozier’s classmates said he is being quarantined in Naval Base Guam’s distinguished visitor quarters, although when he was first tested for the virus is unclear.

The Hill has reached out to the Navy for comment. 

Manhattan cathedral will serve as coronavirus field hospital

The Cathedral Church of St. John the Divine in New York will serve as a coronavirus field hospital, church officials told The New York Times Monday.

The church, which describes itself as the largest Gothic cathedral in the world, will have at least 200 patients inside under nine climate-controlled medical tents by the end of the week, the Rt. Rev. Clifton Daniel III told the Times.

Daniel, the dean of the cathedral, said it will be the first time the building has served this purpose, adding that it first offered its space last month.

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“The last thing like this was the flu pandemic in 1918, but the world was different then and I don’t think they used the cathedral in this way,” Daniel told the Times.

“But traditionally, in earlier centuries, cathedrals were always used this way, like during the plague,” he said. “So this is not outside the experience of being a cathedral, it is just new to us.”

The cathedral’s crypt will be transformed into “a staging area” for medical personnel, Daniel said. 

About 400 beds were delivered to the cathedral last week and three tents sat at the loading dock Monday, James Patterson, the cathedral’s director of facilities and capital projects, told the newspaper. Patients are expected to come by the end of this week or early next week.

It’s unclear if COVID-19 patients will come to the cathedral, but the church leadership is “assuming” so. 

The cathedral, located in Manhattan’s Morningside Heights neighborhood, will be staffed by Mount Sinai Morningside Hospital, which sits next door to it.

Patterson said there will be challenges to using the space, such as finding a way to bathe patients. 

Samaritan’s Purse, a nondenominational evangelical Christian humanitarian organization, has been involved in developing the cathedral as a field hospital. The group also built a field hospital in Central Park last month.

The virus has struck the city hard, with 68,776 confirmed cases, 15,333 hospitalizations and 2,738 deaths, according to its health department. New York Gov. Andrew CuomoAndrew CuomoOvernight Health Care: US hits 10,000 coronavirus deaths | Trump touts ‘friendly’ talk with Biden on response | Trump dismisses report on hospital shortages as ‘just wrong’ | Cuomo sees possible signs of curve flattening in NY Manhattan cathedral will serve as coronavirus field hospital Trump confronts most difficult week yet in coronavirus battle MORE (D) has been warning about hospitals becoming overwhelmed by the growing number of COVID-19 patients.