By: J.S., STA
A new stimulus package designed to mitigate the impact of the coronavirus on the economy entered into force on Saturday after being published in the Official Gazette on Friday. The legislation extends several existing measures, while a major novelty is help with fixed expenses.
The sixth package of its kind, valued at around EUR 1 billion, extends once again the furlough subsidy scheme, measures to improve liquidity and introduces help with the coverage of fixed expenses, among other things.
The furlough scheme is being extended into January 2021, with the amount of the subsidies being raised to the average wage in the country. Also eligible for this type of aid are employees who are unable to do their job because of the epidemic.
In what is a key novelty that will apply for the last three months of 2020 for the time being, companies with a revenue decline of over 70% will be eligible for compensation equalling 1.2% of their annual income per month; those whose revenue declined by between 30% and 70% will get 0.6% per month.
The money will be paid out in January.
Beyond the immediate aid to businesses, which also includes the extension of the possibility to defer the payment of taxes and loans, the new package brings a waiver of VAT on personal protective and medical equipment, simplified registration of remote work, and bonuses for staff working with Covid-19 patients.
The package also raises fines for organisers of gatherings violating the restrictions from EUR 400-4,000 to EUR 1,200-12,000.