Extension of the economic measures taken by the Spanish Government due to Covid-19
The Government makes the ERTE more flexible for workers in the tourism sector
The Council of Ministers approves the reduction to zero of VAT applicable to the supply of medical equipment of national products to public entities and hospitals
The Government has given green light to a new package of economic measures to ease the consequences of the unprecedented crisis the country is facing due to the coronavirus pandemic. The 30 measures that have been taken cover various areas such as employment and fiscal policy to reach those groups that have been left unprotected until now. Among others, the Executive will make access to Temporary Employment Regulation Files (ERTE) more flexible, provide coverage for permanent discontinuous workers and those who would have been out of work when the state of alarm was declared, and introduce taxation measures to provide greater liquidity to SMEs and the self-employed workers.
In particular, the Executive will facilitate access to ERTE or unemployment benefits for permanent discontinuous or seasonal workers. This measure benefits above all the tourism sector, one of the most affected sectors by the economic downturn and which does not yet have a clear date for resuming activity. When the crisis began, many of these workers had not yet taken up their positions. Now they will have a 90-day allowance even if they have exhausted their unemployment or have not contributed for long enough. The measure will benefit, above all, the most touristic communities and, in particular, the Balearic Islands, where this type of contract is used the most.
The Council of Ministers has also approved the flexibilization of the ERTE due to force majeure for companies in sectors considered essential that have suffered significant losses in their income: “a distinction will be made between workers who carry out the tasks called essential by health authorities and those who do not in a given company,” clarifies the Ministry of Labor in a press note. The Government has also given green light to the two-month extension of teleworking as the primary alternative for those who can carry out their business from home with the possibility for workers to adapt their working hours.
In addition, coverage has been extended for workers whose contracts have been terminated since 9th March, or voluntarily terminated since 1st March because they accepted a binding job offer that has lapsed. It is estimated that 2,700 people have been unable to access unemployment benefits because their employment relationship was terminated during the trial period at the request of their employer or because the employer withdrew from the contract. It is also foreseen that self-employed workers who have not yet chosen a mutual fund to manage social security benefits may choose one at the same time as they apply for the severance benefit.
Other new features approved this Tuesday are aimed at the rentals of commercial properties: SMEs and self-employed workers in difficulty will be able to renegotiate and defer rentals with large holders and public companies. In the case of other types of owners, the use of the deposit will be facilitated as a complementary mechanism to the agreements between landlords and tenants. In addition, the ICO guarantee line will be extended to cover not only loans requested through the banking system, but also promissory notes from the alternative fixed-income market; the capacity of the autonomous communities’ mutual guarantee societies will be increased by strengthening the revaluations of the Compañía Española de Reafianzamiento (Cersa) and the Consorcio de Compensación de Seguros will be empowered to act as a reinsurer of credit insurance risks.
“These are horizontal measures and some more specific measures to adapt the regulations applicable to certain sectors for this new phase of extension of the state of alert,” said the Vice President of Economic Affairs, Nadia Calviño, at the press conference following the Council of Ministers on Tuesday.
Fiscal measures
The Executive has also approved new tax measures for the self-employed workers and SMEs, as announced last week by the Finance Minister and Government Spokeswoman, María Jesús Montero.
Specifically, the self-employed workers under modular regime may exceptionally move to tax by direct assessment without having the obligation to remain in this system for three years, as established by current regulations. In 2021 they will be able to return to the modular regime if they so wish. In the case of SMEs, they will be able to modify their system of fractionated payment of corporate taxes based on their effective quarterly profits instead of based on the income of the previous year, an option that can usually only be chosen until February. This way, they will be able to reduce payments on account and reflect the real losses they have suffered. It is a matter of “aligning tax bases to the real situation” to ” release more than 1.1 billion euros of liquidity” for these groups, Calviño said.
The self-employed workers who decide to stay in the modular regime will nevertheless have access to a tax reduction: the Executive has established that the fractioned payments of income tax and VAT will be discounted on the calendar days under the state of alarm. According to the estimations made by the Ministry of Finance, this measure will save 30 million euros in the first quarter and 362,000 taxpayers will benefit from it in income tax payments and another 200,000 in VAT payments. In addition, SMEs will be able to make payment of tax debts subject to obtaining an ICO credit, if they have requested one.
Calviño has also announced a reduction to zero of VAT for imports from third countries and purchases within the EU and Spain of healthcare material aimed for public entities, clinics and hospitals or private social entities until July 31st. According to the Government, this exemption will mean a saving of 1,022 million euros. It has also approved, as already anticipated, a reduction in VAT on books, magazines and electronic newspapers from 21% to 4%.
The Government has also approved exceptional reductions and deferrals for the maritime ports, which will enable companies operating in the sector to save around 100 million euros. Beneficiary companies will, among other things, enjoy reductions in the rate of occupation and will be able to request deferrals of up to six months in the payment of port charges.
Source: ElPaís.com
Extension of the measures taken by the National Security Council in Luxembourg due to Covid-19
On 15th April 2020, the Government Council fixed the guidelines for a deconfinement strategy balanced between public health imperatives and the psycho-social and economic aspects of the current confinement.
As a reminder, the amended Grand Ducal Regulation of 18th March introducing a series of measures in the context of the fight against COVID-19 introduced restrictions or even prohibitions on commerce and artisanal activitiesincluding the closure of construction sites, to contain the spread of the coronavirus. Beyond these regulatory prohibitions, educational activities and the activity of the recycling centres have been suspended.
In the Grand Duchy, the rate of new infections shows a downward trend and thus reflects the effect sought by the confinement measures put in place on 16th March 2020. However, the government has decided to proceed only with a cautious lifting of the confinement measures.
Thus, the deconfinement strategy consists of:
- Protecting in particular vulnerable groups.
- Implementing a gradual exit from confinement in phases sufficiently separated from each other.
- Ensuring, at all times, sufficient hospital capacities in normal and intensive care to be able to handle serious cases in health care institutions.
- Making the population aware of its responsibilities and to reduce as far as possible the risk of uncontrolled spread by maintaining, or even strengthening, the barrier measures to be observed in any place where people congregate.
- Implementing preventive measures at work.
- Ensuring the isolation and close follow-up of new cases of infection.
- Developing testing capacities and support research in particular with regard to serological tests to measure the acquired immunity of the population.
The resumption of activities can therefore only take place in successive phases that are well thought out in terms of impact. The decision to launch a phase is taken by the Government on the recommendation of the Prime Minister and the Minister of Health, and it is based on close monitoring of the evolution of the number of newly infected people in the population and an estimate of available hospital capacity in the short and medium term.
It is also clear that the Prime Minister and the Minister of Health may submit to the Government Council at any time a proposal to reintroduce stricter confinement measures when, on the basis of the monitoring of the evolution of the situation, it appears that hospital capacities are likely to reach a critical level which could jeopardise the proper care of patients.
It is important to note that any resumption of activities will be accompanied by very strict barrier gestures and complemented by the mandatory wearing of a mask or any other device that covers the nose and mouth for interpersonal contact situations if the safety distance of 2 metres cannot be guaranteed.
Deconfinement strategy in phases:
Phase 1 – Reopening of construction sites (tentative date 20th April 2020).
The first phase thus covers the following activities:
- Reopening of construction sites.
- Educational aid and assistance activities (Services in child and family aid, Competence centres in special psycho-pedagogical care and measures to benefit children who are on the verge of dropping out of school).
- Activities of gardeners and landscapers.
- Businesses whose main activity is do-it-yourself.
- Reopening of recycling centres.
This list will be completed on 4th May by the resumption of senior classes, as well as internships and practical work at BTS and university level.
Phase 2 – resumption of secondary education (tentative date 11th May 2020).
Phase 3 – resumption of fundamental education as well as the reopening of crèches and childcare facilities (tentative date 25th May 2020).
This will be followed, in later phases, by the resumption of commercial activities and the reopening of the HORECA sector. At this stage, however, it is premature to give a detailed assessment of the lifting of restrictions in this sector. A final decision will be taken in due course by the Government Council on the basis of an analysis of the situation.
Companies, businesses and administrations are generally encouraged to continue to promote teleworking throughout the transition period out of confinement.
Gatherings will remain prohibited until 31st July, except for funerals and civil weddings, which will be allowed for a maximum of 20 people and provided that an interpersonal distance of 2 metres is respected. The prohibitions laid down in Article 2 of the amended Grand Ducal Regulation of 18th March introducing a series of measures in the context of the fight against COVID-19 will be maintained.
The confinement measures currently in place for vulnerable persons and persons over 65 years of age will continue to be in force at least until the end of the first phase. The gradual lifting of the current restrictions also entails the need to develop, in consultation with the Ministry of Family Affairs, Integration and the Greater Region a strategy for the protection of vulnerable persons in care centres and persons over 65 years of age.
Workers belonging to the vulnerable category may consult their doctor to determine whether the severity of the illness prevents them from going to work. This assessment must be done on a case-by-case basis, taking into account the recommendations of the Health Directorate and the working environment of the person concerned.
Source: Gouvernement.lu
The Chamber of Commerce of Luxembourg informs that the distribution of protective masks to businesses, announced on Friday 17 April 2020, will take place on the following dates and according to the following procedures:
- companies with 50 or more employees will receive the masks by direct distribution on Monday 20 or Tuesday 21 April. For these two days, companies are requested to organize a presence at their offices to receive the packages distributed by Post Luxembourg.
- companies with fewer than 50 employees will receive a letter from the Joint Social Security Centre (CCSS) on Monday 20 or Tuesday 21 April informing them of the number of masks made available to them. The masks will be given to the companies after showing the original letter from the CCSS to a post office.
Each company will receive 5 protective masks per employee.
The provision of masks free of charge, organised jointly by the Government, the CCSS, Post Luxembourg and the Chamber of Commerce, will make it possible to equip some 60,000 companies in all sectors of activity (except the craft sector). Representing three quarters of the national workforce, these 60,000 companies will receive some 2 million masks.
Companies can contact the helpline (+352) 42 39 39 – 445 of the Chamber of Commerce or by e-mail at covid19@houseofentrepreneurship.lu for any questions. Further information on the aid measures can be found on the website www.cc.lu/covid19/.
Source: www.cc.lu
Update on support measures for employers
50% bank guarantee
A maximum amount of 250,000 euros from the Mutualité de Cautionnement.
Partial employment in case of force majeure
Advance payments based on the expected number of employees
Application through the MyGuichet.lu online tool
Applications by mail, email or fax will no longer be accepted
2 cases of application processing:
1) Mandatory closing: fast-track process or directly suitable
2) Open but with reduced activity: agreement of the Secretariat of the Committee on Trade Conditions of the Ministry of Economy
Fiscal measures
Requesting a delay on the payment and the cancellation of the VAT advance payments
Reimbursement of the credit balance < 10.000 EUR and administrative flexibility
Social security contributions: measures for temporary suspension of the CCSS
Aid scheme for companies in temporary financial difficulties
Capital subsidy in form of reimbursable advances of up to 500.000 euros
Application through the MyGuichet.lu online tool
Calculation basis: employee expenses and rental expenses
Emergency financial assistance for small businesses and self-employed workers
2 cases of application processing:
1) Mandatory closing
Immediate and non-refundable financial compensation of
Admission requirements and form
2) Open but with reduced activity
Immediate non-refundable financial subsidy of 2.500 euros
Admission requirements and form
In the context of the Covid-19 crisis, the Directorate General for the Middle Classes has established an emergency fund for very small enterprises (0-9 full time employees) and self-employed workers.
Thanks to this measure, enterprises with a maximum of 9 employees and self-employed workers who have a valid establishment permit issued before 18th March 2020 (with a minimum annual turnover of 15,000 euros and whose activity has been interrupted after the entry into force of the Grand Ducal regulation of 18th March 2020, which introduces a series of measures in the context of the fight against Covid-19) can submit an application for an immediate and non-refundable financial assistance of up to 5,000 euros.
The aim of this measure is to provide immediate financial support to the numerous very small businesses as well as to the self-employed workers who, although they constitute an essential part of our economic structure, are generally also the most vulnerable to contingencies such as the Covid-19 crisis.
In this regard, it is important to clarify that the granting of this aid is independent of the law proposal that will complement the existing aid instruments.
SOURCES: www.cc.lu , guichet.public.lu
Webinar on “Where are the business opportunities during the coronavirus?”
On April 16th, the Official Spanish Chamber of Commerce of in Belgium and Luxembourg, organized a webinar on “Where are the business opportunities during the coronavirus?”, by the mentor Karine Brück, founding partner of Karine Bruck International (Ecosolve SL). The webinar was attended by a dozen companies.
The webinar was aimed at European companies interested in learning how to identify the sectors of opportunity that still exist during this global crisis and how SMEs can take advantage of them.
She mentioned the difficult and unprecedented situation that we are going through and that implies a drastic change in the global economic environment. Several topics were mentioned like the supply chain and demand collapse, the financial constrain, the investment freeze in addition to some global economic impact estimations.
Then, some clear guidelines for companies to confront this crisis were given, such as, workforce protection, supply chain stabilization, customer engagement, financial stress testing and nerve-center integration. She also proposed the creation of a Crisis Management Center as a key instrument for monitoring the situation and creating crucial future strategies for the survival of the enterprise. Ms. Brück recommended, especially for the short- and medium-term wellbeing of the company, to modify the sales strategy and to improve communication within and outside the company for reducing uncertainty and strengthen coordination.
In a broader perspective, an overview of the situation by sectors was given including the identification of the ones that will be leading the market in the coming months. Moreover, from a macroeconomic perspective, she provided the participants with the most helpful tools to identify new international tradepartners that could play a decisive role in the future trade activity of the companies.
Finally, she also gave some insights on multisectorial opportunities and she focused on potential tenders that could be interesting for most of the industries.
After the presentation, a Q&A was featured where the participants could ask their doubts about the information explained.
The Chamber wants to sincerely thank Karine Brück for her amusing and enriching presentation.
Breakfast-Conference: “Understand and promote the compliance”
Last 6th of February 2018, the Chamber organized a conference about the comprehension and the promotion of the compliance in collaboration with DS Avocats Law Firm. The event was attended by many representatives of Spanish and Belgian companies, as well as EU organization’s representatives, who were interested on the impact this topic could have on them, wanted to know which steps to follow in order to avoid the penalties their companies may suffer.
First, Jean-Marie Salva, partner of DS Avocats, started by pronouncing some welcome words and by thanking the attendees for their participation before presenting the law office’s work around the world. Then, he presented Ángela López de Molina, partner of the law firm, who will set a headquarters office in Madrid on March 1st.
During her presentation, López Molina spoke about the current legislation in Spain, which since the change of the Penal Code in 2015 which allows to impute criminal responsibility to the legal persons, requires the companies to design a crime prevention plan.
The compliance was created in 1970, in response to the corruption experienced by the United States through the legal persons.
The crime prevention plan is set as a series of measures of surveillance and control implemented to prevent the commission of crimes or, at least, to try to reduce significantly the possibility of being committed. To do this, it is necessary to count on the “Compliance Officer”, that is a person in charge of preventing all the possible crime situations and trying to solve them.
Furthermore, it is necessary for all the employees to have access to that plan and to expressly accept it. As a conclusion, Ángela mentioned the prevention, detection, answer and supervision activities necessary to credit that the company acts according to the law.
Later, Michel Debroux, partner of DS Avocats, exposed the evolution of the compliance through the years in Europe, which changed from something voluntary to something mandatory.
Debroux pointed out the existence of cultural differences to show the difficulty in unifying the action criteria, even inside a same company with offices established in different places of the world. Thus, he underlined the necessity of taking into account the local specificities to suit in law.
In the case of a company with offices in different places of the world, it is necessary for all of them to apply to the rules of the headquarter office and to its owns, as they have to fit in the local customs.
Thus, the compliance is a process which requires the organization, integration and verification of the regulatory compliance.
As López Molina explained, the speaker described the main tasks that the “Compliance Officer” needs to accomplish. He needs to establish a list with the potential risks. Therefore, he will need to be totally integrated in the company and has to be able to deal with crisis.
Finally, to conclude, the partner of DS Avocats presented what they call “the 10 rules of the perfect compliance project” in which the main characteristics to respect in order to manage perfectly this project are summarized.
The conference took part in a participatory environment during which every attendee had the opportunity to express their doubts and talk with the speakers.
In collaboration with:
Luncheon-Debate of ONCE and their Foundation with Marianne Thyssen, Commissioner for Employment, Social Affairs, Skills and Labour Mobility
The training management and employment boost models hold by ONCE and its Foundation (on top of their social companies ILUNION) supported by the co-managed investment from the European Social Fund (ESF) have managed to boost over 60.000 job opportunities for people with disabilities in Spain during the past 15 years.
These data were presented today by the President of the ONCE and its Foundation, Miguel Carballeda, to the European Commissioner for Employment, Social Affairs, Skills and Labour Mobility, Marianne Thyssen, during the luncheon-debate organized by the Official Spanish Chamber of Commerce in Belgium and Luxembourg for a hundred businessmen and European Community authorities.
Carballeda explained how the organization works to achieve “a more inclusive, accessible and competitive Europe”. He emphasized the need to keep building “partnerships for disabilities” from which over 80 million citizens within the EU benefit, four of them living in Spain. “We highlight in Brussels the value of disability and of people with disabilities to prevent them from being put at risk” he said.
The President of the ONCE and its Foundation explained how the social organization model works, based on the management of the responsible gaming by ONCE; the boost to the rights, the training, the employment and the accessibility for people with disabilities (among other aspects) and the consolidation of social companies within the Organization that, under the denomination of ILUNION, are an “example that the social and economic profitability can go hand in hand generating a real shared value and commitment with the citizenship.”
Commissioner Thyssen, who visited ILUNION in Madrid a few months ago, explained how the European Social Fund has become a “catalyst” to invest in inclusion and support those social groups that are disadvantaged. She valued the transnational initiatives that took place in Spain and she emphasized the work of ONCE and its Foundation and its capacity to bring together “relevant actors beyond their own boundaries”.
Thyssen shared the ONCE and its Foundation´s point of view, wishing to “end the charitable approach that exists towards disabilities” and assured that the work of the Organization and its social companies ILUNION are “a source of inspiration and an example to follow by the Community policies for people with disabilities”. “Together we will make a more social and fair place of the European Union” she concluded.
Strong partnership with Europe
Alberto Durán, Vice-president of the ONCE Foundation, highlighted the “solid” partnership they have with the European and Spanish authorities, as manager of the operational programs of the European Social Funds, particularly acting as intermediate body of the Spanish Operational Programme “Fight Against Discrimination”, which allows to boost “cooperation networks for employment and training with other public and private agents in Spain and Europe”, strengthening ESF´s work.
Durán noted before Thyssen how the partnership´s model “multiplies” the positive effects of the European funds for people with disabilities. In fact, over 230,000 people in Spain benefited the last 15 years of the different training programs, 60,000 of them obtained a job, “half of them being women with disabilities”.
Furthermore, the management of these funds of ONCE and its Foundation made Disability a relevant topic in the European agenda, within diversity management, inclusion and corporative responsibility, aspects to which he committed the efforts of the Organization “now and in the future”.
“We want to contribute to the fact that Spain will be a reference in this chapter, but above all, we offer our support and experience to all of our European colleagues, to demonstrate that the talent, the spirit of improvement and enthusiasm of the people with disabilities transcend borders and it is an essential contribution for building a smart, sustainable and inclusive Europe, ” he said.
Advertising campaign: “On the right path”
The ONCE and its Foundation took advantage of the event in Brussels to release the traditional advertising campaign of social awareness about people with disabilities in the European capital, which often coincides with Christmas time. On this occasion the topic precisely has the value of the 15 years of partnership with Europe and the jobs which it has allowed to boost, such as “life opportunities to those who will have more difficulties”, in the words of Miguel Carballeda.
In the campaign, the protagonists are people with different kinds of disabilities who have found an employment and show their daily life at work. This way, it can be seen how the laboral integration is but, above all and being the most important thing, how social inclusion is in the working groups, with colleagues, showing that they can contribute more together to the companies and society in general, with the slogan “On the right path”.
The whole day, the delegation of ONCE and its Foundation also celebrated a meeting with Juan de Arístegui, Permanent Representative Ambassador of Spain in the EU, who knew and appreciated all of them, among other meetings of interest with MEPs and representatives from the European Commission.
Luncheon-debate with Ignacio García Bercero, Director at the DG for Trade of the European Commission
Last Wednesday, 16 September, the Official Spanish Chamber of Commerce in Belgium and Luxembourg organized a luncheon-debate with Ignacio García Bercero, Director at the DG for Trade of the European Commission, about the Transatlantic Trade and Investment Partnership (TTIP) and its implications to Spain.
The event, sponsored by Repsol, was attended by representatives of European Institutions , lobbyists, members of the Spanish Chamber of Commerce and corporate executives, among other participants.
The President of the Chamber of Commerce, Juan Rodríguez-Villa Matons, welcomed the attendees and presented the speaker to the audience, going over his trajectory and highlighting his relevant professional experience.
García Bercero presented the Transatlantic Trade and Investment Partnership pointing out that it is “the most ambitious” agreement within the European Union. It is, in fact, a “winning proposal for the EU and the US” that will establish the rules and principles that will regulate the commercial and investment relations between both sides of the Atlantic.
After two years of conversation, and supported by the majority of the European Parliament, the agreement is still in the “hard negotiation” phase, but will hopefully be concluded before the next presidential elections of the United States.
The TTIP broaches traditional subjects such as custom duties, service trade restrictions or public procurement, but goes further, dealing with delicate and sensitive subjects for both sides, such as investment and energy. Consequently, the final partnership has to be “balanced, competitive and ambitious above all”.
In the second part of his intervention, the speaker focused on the benefits that the agreement would bring to the Kingdom of Spain, explaining that big companies but also SMEs would profit from it.
Following the presentation, attendees had the opportunity to ask Ignacio García Bercero questions. They raised their doubts about Intellectual Property, dataflow and CETA to which the Director of the DG for Trade provided detailed replies.
The event ended with the delivery of a gift to García Bercero by the Chamber and by Repsol, as an expression of gratitude for his collaboration with the institution. The wine served during the event was sponsored by Pernod Ricard.
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