The cabinet is earmarking a further 3.7 billion euros for corona support for companies and employees to prevent bankruptcy and unemployment as much as possible. Hard-hit sectors receive additional support, while planned austerity measures are reversed. The support comes on top of the nearly 34 billion euros that the government has already set aside for the corona crisis.
The cabinet is earmarking another 3.7 billion euros for corona support for companies and employees to prevent bankruptcy and unemployment as much as possible. Hard-hit sectors receive extra support, while planned austerity measures are reversed. The support comes on top of the nearly 34 billion euros that the government has already set aside for the corona crisis.
Ministers Eric Wiebes (Economic Affairs), Wopke Hoekstra (Finance) and Wouter Koolmees (Social Affairs) announced the details of the new support package on Wednesday.
The support is needed because the economy remains locked for longer than expected. That’s because the corona numbers look bad and the second wave isn’t over yet. Therefore, “a solid package” is still needed, Wiebes said. Although, according to the minister, there is light at the end of the tunnel with a vaccine.
This is an extension of the current third aid package that will run until June 2021. At the same time, planned austerity measures have been canceled.
More money for fixed costs, wage subsidy not cut back
The compensation for fixed costs (TVL) is increased so that companies with high turnover losses, such as cafés, receive a higher compensation. Entrepreneurs receive a maximum of 70 percent of their costs from the government.
The reimbursement is also being expanded so that, for example, suppliers of the catering industry are eligible. The maximum amount to be reimbursed remains at 90,000 euros for three months.
As expected, the wage subsidy (NOW) will not be scaled back from January.
There will be a new scheme for employees who miss out on income, but cannot use the existing lifebuoys. This concerns, for example, self-employed persons who no longer have assignments or employees who do not receive any income because they are in quarantine. They can make use of the so-called Temporary Support Necessary Costs (TONK).
Starters seem to fall between the cracks. The corona support is based on turnover from a year ago, which they do not have. It was therefore not possible to establish a “fair and practicable” scheme. “There is a great risk of fraud and I don’t want that,” said Koolmees.
He acknowledges that this is a “hard blow” for these entrepreneurs. The group does have the option of taking out favorable government loans.
Wiebes: ‘Government cannot solve everything’
Wiebes calls on catering entrepreneurs to sit down with each other to, for example, make agreements about the rent and contracts with breweries and property owners. “Nobody benefits if companies go bankrupt,” said the minister.
At the same time, the cabinet does not have an answer to everything and does not want one. “The government cannot solve everything,” said Wiebes. It is unavoidable that companies will go bust, he warned.
At the end of October, the support package was also adjusted once.
Economy has been partially locked since October 14
Since October 14, the catering industry, cultural institutions, events and sports clubs have to keep their doors closed. Since then, little or no income has been received.
It does not look like catering establishments, for example, will soon be able to reopen. The corona figures, such as the daily IC admissions and the number of new infections, look too bad for that. Prime Minister Mark Rutte was unable to offer the catering industry any perspective on Tuesday evening during the press conference.
Three support packages have now been set up, the last of which will run from October to June next year. At the end of August, these plans were announced by the cabinet, the coalition, employers and employees, but that seems a long time ago.
At the time, the number of new positive corona tests was not as high as it is now and there was not yet a second wave.
The House did warn against a second wave several times.
