Depiction of Shockwave: the impact of COVID-19

Shockwave: the impact of COVID-19

We have seen a sea change in the way we live and how we do business. The global pandemic has meant that we—companies, governments, regulators and banks—have had to adapt rapidly to guidance on protecting lives, livelihoods and the economy. People and firms have found new ways of doing things, and although the pandemic is still with us, we are starting to look to the future.

A wave of change is sweeping over us. Well-established ideas around competition, regulation and finance have been reassessed and markets are in flux. However, the disruption caused by this wave leaves space for us to build bridges. There are difficult questions to address, but together we will unravel their complexities and bring the solutions to light.The wave is slowly receding, and a new landscape, with new opportunities, is beginning to surface—however, the pandemic remains unpredictable.

Each of us—companies, governments, regulators, banks and wider society—will play an important and active role in putting the pieces back together to create a new, exciting and sustainable future.

Shockwave: the impact of COVID-19 23 posts

Articles
Depiction of Valuing banks’ non-performing loans after COVID-19
10 minute read

Valuing banks’ non-performing loans after COVID-19

Due to the COVID-19 crisis, the European Central Bank (ECB) projects a sharp rise in non-performing loans (NPLs). In late 2020, the European Commission published an action plan for tackling NPLs, highlighting a potential need for banks to move NPLs off their balance sheets and into asset management companies (AMCs). Any transfer of NPLs to state-owned AMCs is likely to raise state aid issues—what are the key economic and financial questions that need to be considered here? Read More

Articles
Depiction of Promoting the green transition: the EU’s Recovery and Resilience Facility
11 minute read

Promoting the green transition: the EU’s Recovery and Resilience Facility

Over the next five years, significant funding will be made available through the EU’s Recovery and Resilience Facility (RRF) to support member states’ recovery from the COVID-19 crisis. A large part of this funding will be allocated to the ‘green transition’, supporting the EU’s goal to reach net-zero emissions by 2050. We take a look at some of the investments, and the role of economic and financial analysis in ensuring that they are in line with state aid rules. Read More

Articles
Depiction of International travel in a pandemic: what does UK data tell us?
9 minute read

International travel in a pandemic: what does UK data tell us?

Travel restrictions, as well as testing and quarantine requirements, have stifled international travel during the COVID-19 pandemic. The UK government’s traffic light system, which was originally welcomed by many, has led to confusion and frustration in the industry and among passengers. The UK government has recently published more detail… Read More

Articles
Depiction of Trade-offs for take-off: domestic aviation in a post-pandemic world
6 minute read

Trade-offs for take-off: domestic aviation in a post-pandemic world

Several European governments have provided support to their national airlines and airports amid the COVID-19 pandemic. At the same time, they have committed to a green recovery, pledging to decarbonise their domestic transport sectors in order to reach their net-zero goals. What decisions and trade-offs might governments need to make in order to support domestic aviation and meet their environmental targets in a post-pandemic world? Read More

Articles
Depiction of Working from home: shove or nudge?
4 minute read

Working from home: shove or nudge?

Three letters alone can describe the last 12 months for millions of people: W-F-H. Working from home is no longer a niche arrangement. Overnight, whole sectors of the economy abandoned the office in favour of the kitchen table, sofa or garage. There are, of course, pros and cons to… Read More

Articles
Depiction of Post-COVID airport regulation: a clear path?
10 minute read

Post-COVID airport regulation: a clear path?

In April 2020, as governments around the world imposed travel restrictions, we asked what the long-term effects would be for the aviation sector, with a focus on the implications for economic regulation.1 One year on, many restrictions remain. In this article, we ask: what has happened since? What… Read More

Articles
Depiction of Crisis cartels: a COVID-19 side effect?
8 minute read

Crisis cartels: a COVID-19 side effect?

Over the years, crises have had a global impact on consumers and companies. The COVID-19 pandemic is no exception, with a number of companies being forced to close their doors for a prolonged period. National governments and competition authorities have shown increased willingness to allow companies to collaborate in order to combat the crisis. But what does economic theory suggest about the current COVID-19 crisis and its effect on the number of active cartels? Read More

Articles
Depiction of How will COVID-19 affect reform of the energy retail sector in Italy?
7 minute read

How will COVID-19 affect reform of the energy retail sector in Italy?

Lockdowns related to the COVID-19 pandemic have had a significant impact on the energy sector. Italy was the first European country to be significantly affected by the COVID-19 pandemic and is gradually moving back to normality. In a previous piece, we covered the pandemic’s effect on the UK electricity market; here, we consider the effect on the Italian electricity market. Read More

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Depiction of How will COVID-19 affect reform of the energy retail sector in Great Britain?
8 minute read

How will COVID-19 affect reform of the energy retail sector in Great Britain?

The energy sector across Europe faced a shock as lockdowns of varying severity were established in response to the COVID-19 pandemic. These shocks were mainly caused by the sudden reductions in mobility and productivity caused by the mandated temporarily closure of economies across the continent. Read More

Articles
Depiction of Living remotely: the value of being connected
8 minute read

Living remotely: the value of being connected

Prior to early 2020, the idea of living remotely might have triggered visions of moving to the northernmost Scottish island, or to the far edges of Alaska, and becoming self-sufficient—retreating to a more primitive lifestyle, away from the demands of modern life and its reliance on technology and the Internet. Read More

Articles
Depiction of Video (conferencing) killed the commuter star?
4 minute read

Video (conferencing) killed the commuter star?

For many of us, workplace communication has moved online due to the coronavirus pandemic. What does this mean for traditional transport infrastructure that is geared towards enabling greater employment density? Have we reached peak agglomeration and, if so, what does this mean for investment priorities? Read More

Articles
Depiction of Paying it forward: is COVID-19 accelerating the transition to digital payments in Italy?
6 minute read

Paying it forward: is COVID-19 accelerating the transition to digital payments in Italy?

Is the COVID-19 pandemic accelerating the digitalisation of payments? During the lockdown in Italy, many shops turned to innovative payment solutions, enabling them to continue to operate by offering home delivery. Read More

Articles
Depiction of Calculating the cover charge: business interruption insurance and COVID-19
6 minute read

Calculating the cover charge: business interruption insurance and COVID-19

The COVID-19 pandemic has had a major impact on businesses across the world. Many have turned to their insurance providers to claim compensation under their business interruption (BI) insurance. However, even if a firm is covered for financial losses caused by the pandemic, determining the compensation amount is far from straightforward. What are the challenges, from an economic and financial perspective, in determining the compensation for these policyholders? Read More

Articles
Depiction of COVID-19 and damages quantification: key challenges for the post-pandemic world
7 minute read

COVID-19 and damages quantification: key challenges for the post-pandemic world

The COVID-19 pandemic has caused large-scale disruptions to the global economy. One consequence is the emergence of commercial disputes following terminations or breaches of contracts during the pandemic. What challenges are likely to arise when quantifying damages in light of COVID-19 in commercial litigation or arbitration proceedings? Read More

Articles
Depiction of Destinazione incerta: regolazione aeroportuale all’indomani del COVID-19
11 minute read

Destinazione incerta: regolazione aeroportuale all’indomani del COVID-19

La pandemia di COVID-19 ha avuto un forte impatto sulla salute pubblica, oltreché effetti significativi e di vasta portata sulla stragrande maggioranza dei comparti dell'economia. Read More

Articles
Depiction of How quickly will customers revert to pre-pandemic behaviour?
4 minute read

How quickly will customers revert to pre-pandemic behaviour?

The COVID-19 pandemic has transformed societies across the world, as governments, businesses and individuals respond to the crisis. Customer behaviour has changed both rapidly and radically, as we adapt to the new circumstances and adopt new ways of living and working. Read More

Articles
Depiction of COVID-19: behavioural economics in the spotlight
7 minute read

COVID-19: behavioural economics in the spotlight

The COVID-19 pandemic is by definition a global problem. Nonetheless, different countries have adopted different solutions, with varying degrees of success. Read More

Articles
Depiction of Destination unknown: airport regulation in the wake of COVID-19
9 minute read

Destination unknown: airport regulation in the wake of COVID-19

The COVID-19 pandemic has had a severe impact on public health, and significant and far-reaching effects across most sectors of the economy. Given the current global travel restrictions, with most of the world’s population living in countries with some form of travel ban or restriction, aviation has been one of the most dramatically affected sectors. What long-term effects will this have on the sector, and what are the implications for economic regulation? Read More

Articles
Depiction of Mergers and the failing-firm defence in the age of COVID-19: going out on a limb?
6 minute read

Mergers and the failing-firm defence in the age of COVID-19: going out on a limb?

The immediate impact of the COVID-19 pandemic on merger activity is not yet clear. Increased uncertainty caused by the disruption may discourage transactions, although the currently lower market value of stocks may encourage the acquisitions of smaller, innovative start-ups, such as those in the pharmaceutical or digital communication sectors. Read More

Articles
Depiction of The coronavirus, markets and public policy: challenges and impacts
7 minute read

The coronavirus, markets and public policy: challenges and impacts

At a time when confinement—strict, and soon perhaps even stricter—is still the order of the day in most countries, it is certainly premature to start drawing lessons and conclusions from the current coronavirus crisis. Read More

Articles
Depiction of How are Italian consumers reacting to COVID-19?
6 minute read

How are Italian consumers reacting to COVID-19?

On 31 January 2020, the first two cases of COVID-19 were registered in Italy. Over the following weeks, the virus spread throughout all Italian regions, and by the second week of March, Italy was under lockdown. Read More

Articles
Depiction of COVID-19: a ‘material adverse change’ for merger remedies?
8 minute read

COVID-19: a ‘material adverse change’ for merger remedies?

Instead of blocking a merger, competition authorities across Europe and beyond may ask for commitments to address competition concerns with the concentration. In these cases, writes Oxera Partner Maurice de Valois Turk, the merger approval is conditional on the (implementation of) the commitments, and thus one could argue that the commitments (together with the approval) form a contract between the authority and the notifying firms. Read More

Articles
Depiction of A practical guide to the state aid rules to tackle the impact of COVID-19
10 minute read

A practical guide to the state aid rules to tackle the impact of COVID-19

At the time of writing this note, the health crisis caused by the COVID-19 pandemic has severely affected a number of EU Member States. Read More