While some dream of forming a coalition, are generally nervous and point the finger at the Government of the Republic of Slovenia, saying how it stands idly, the reality is completely different. Not long after the fifth anti-COVID-19 package was presented, the sixth consecutive anti-COVID-19 package is being prepared to help citizens and the economy deal with the consequences of the epidemic. The government plans to maintain existing measures, such as waiting for work measure. They are also considering extending the measure of subsidizing part-time work, extending the deferral on repayment of loans for another 12 months and simplifying and granting a guarantee scheme and much more. The Chamber of Commerce of Slovenia and Industry (GZS) also helped with its proposals.
In a recent interview with Delo, Minister of Economic Development and Technology Zdravko Počivalšek revealed that the Ministry of Economy will take care of announcing proposals for measures for which they are responsible. He revealed that, among other things, they are considering subsidising fixed costs in order to make business easier for all those who will face a drop in traffic of at least 35 percent compared to last year. Regarding the possibility of subsidising rents, he stated that they are investigating solutions in neighbouring Austria, but have the idea of writing off the utilities fee – electricity, water, gas to all those who do not have the opportunity to do business because of the measures. According to Počivalšek, in such a way, part of the fixed costs could be covered. As the first five packages did not address all the problems in certain parts of industries (for example, assistance to city hotels), according to the STA, it can be expected that the sixth anti-COVID-19 package will address it.
Undoubtedly, it is encouraging that the Chamber of Commerce and Industry of Slovenia helps with the formulation of proposals for a new anti-COVID-19 package. The Chamber is emphasizing that the current situation in the economy requires additional measures to help affected companies and individuals. “The Chamber of Commerce and Industry has therefore prepared a new proposal of measures for PKP6, which it has recently submitted to the Government of the Republic of Slovenia and the competent ministries,” they announced on their official website. The Chamber of Commerce and Industry proposes to postpone the implementation of the provisions of the Minimum Wage Act, which will cause a large increase in wages starting on 1 January 2021. They believe that the postponement should last for two years, more precisely until 1 January 2023.
They proposed the amount of subsidy to cover fixed costs
They propose adjustments for new loans with regards to the guarantee scheme, namely an increase in the amount of a loan subject to a state guarantee to 25 percent of sales and 2 times labour costs, non-exclusion with a deferral on credit obligations, simplifications in loan applications up to 1 million euros in terms of requiring less conditions.
With regard to the subsidy to cover fixed costs, they suggest that companies whose operations have been affected by the new coronavirus epidemic and have therefore seen a drop in sales in 2020 (compared to the same period in 2019) can benefit from reimbursement of part of the fixed costs incurred (rents, costs of leasing of real estate and other fixed assets, costs of emergency maintenance of machinery, costs of electricity, heating, cleaning, part of NUSZ, cost of software licenses, cost of insurance, subscriptions, cost of interest and fees, depreciation of tangible and intangible assets, write-offs of perishable goods): 80 percent coverage of fixed costs in case of a drop in sales of more than 80 percent, 60 percent of coverage of fixed costs in case of a drop in sales of more than 60 percent and less than 80 percent, 40 percent coverage of fixed costs in case of a drop in sales of more than 40 percent and less than 60 percent, 20 percent coverage of fixed costs in the event of a drop in sales greater than 20 percent and less than 40 percent.
In order for the Slovenian economy not to lag behind other competitors, who receive incentives in their countries, it is necessary to maintain development departments in companies, the chamber emphasises. A lag in development in 2010-2013 was caused by the decline of funds in the last financial crisis, which was reflected in the loss of market share in foreign markets. For this reason, the Chamber of Commerce and Industry emphasises that they want to take appropriate and timely measures that will prevent the decline in development activities in companies. Among other things, in order to prevent the risk of brain drain, they proposed a subsidy for development staff, who are crucial in companies for acquiring and conducting current and new business. “With this in mind, the state should allocate funds for the maintenance and new employment of top staff in the form of compensation for their contributions and salaries in the amount of at least 80 percent of their salary (compared to the average of the last three months before COVID-19).”
The proposal mentioned a research and development voucher, which would be intended to encourage cooperation between companies and research institutions in the development of new products. “Companies apply for vouchers that they can use to fund development carried out at research institutions. The total amount of the voucher is 200 thousand euros in two years. The state co-finances vouchers (eg 50 percent), companies cover the difference.” They proposed Development and Innovation Projects (RIP), the purpose of which is to co-finance development work in companies and investments in development equipment and machines for the development of new products/services and the introduction of new technologies.
The co-financing rate is also motivating for large companies (65 percent). As part of the development package, they propose strengthening of development departments in companies (subsidy for employment or training of young researchers in business enrolled in postgraduate studies; subsidy for employment of researchers in business from public research organizations and other research and higher education institutions in Slovenia, etc.).
They are proposing a change in the reimbursement of part-time compensation
Regarding waiting for work measure, they propose a change in the reimbursement of part-time compensation (the state subsidy to the company should amount to 80 percent of the employee’s salary compensation (currently these are fixed amounts calculated on the basis of 80 percent of the minimum base for social contributions), but not less than current amounts calculated on the basis of 80 per cent of the minimum base for social contributions.
Regarding waiting for work measure, they propose a preferential regulation of the measure of waiting for work for those employers who, due to current measures, are unable to perform activities or they perform it at a significantly reduced extent. “The salary compensation paid to waiting workers employed by these entities should be reimbursed in the full amount of the compensation paid, not just 80 percent. For all other entities, the measure of waiting for work should remain in force, as defined in PKP5,” they explained.
The Chamber also proposed measures to cover sickness benefits during the epidemic, exemption of returns of state aid, coverage of sickness benefits during the epidemic, extension of single permits for foreigners and other permits related to work, employment and self-employment of foreigners, measures in areas of passenger transport implementation, etc.
