Given the economic and social impact caused by the COVID-19 epidemic, the Government has approved two packages of urgent economic measures to protect families, workers, self-employed workers and companies; minimize the impact on the economy to facilitate a quick recovery once the health emergency is overcome, and strengthen the fight against the disease. Previously, the Government approved in the Council of Ministers on March 10, measures aimed at guaranteeing public health.
The first plan was approved in the Council of Ministers on March 12 and involves the mobilization of more than 18,000 million euros. The measures were articulated by means of a Royal Decree-Law that specifically includes actions to strengthen the health sector, protect the well-being of families and provide liquid support to affected companies, particularly the tourism sector and SMEs.
On March 17, the Council of Ministers approved a Royal Decree-Law that includes measures aimed at supporting families; help workers and self-employed workers whose income is reduced; support companies with liquidity and flexibility to preserve employment, and strengthen the fight against disease. These measures make it possible to mobilize up to 200,000 million euros of credits, with public guarantees of up to 100,000 million and an estimate of public spending of around 5,000 million euros.
MEASURES APPROVED IN THE COUNCIL OF MINISTERS OF MARCH 12, 2020
The Government approved in the Council of Ministers on March 12, 2020 a first plan of exceptional measures in the economic field to mitigate the impact of COVID-19 that will allow mobilizing up to 18,000 million euros this year. These measures are in addition to those adopted in health and labor coverage at the Council of Ministers on March 10.
Measures to strengthen the health system
- Resources of the Ministry of Health are reinforced by 1,000 million euros through the contingency fund to meet the extraordinary expenses that are generated, so that it can adequately meet the health needs.
- Advance of 2,800 million euros of payments on account to the Autonomous Communities so that they can face immediate needs derived from this situation in their health systems.
- The Government is empowered to regulate the prices of some products necessary for the protection of health and, in the event of an exceptional situation, the Interministerial Commission on Drug Prices may set the maximum amount of sale to the public of certain drugs and products.
Support measures for families
- Endowment of 25 million euros of resources to the Autonomous Communities for, through scholarships-dining room, guarantee the basic right to food for vulnerable boys and girls affected by the closure of schools.
- Administrations are enabled affected by reinforced containment measures to modify the school calendar so that they can flexibly organize the development of the course.
- The personnel at the service of the Public Administration framed in the special regime of administrative mutualism that is in a situation of preventive isolation, as well as those who have been infected with the virus, will be considered in Temporary Disability assimilated to the sick leave due to Work Accident (in line with what was approved on March 10 for private sector workers)
Support measures for the business sector
- Flexibility of tax payment deferrals for a period of six months, upon request, with a discount on interest rates.
- A specific financing line through the Official Credit Institute for an amount of 400 million euros to meet the liquidity needs of companies and self-employed workers in the tourism sector, as well as related activities that are being affected by the current situation.
- The Business who have received loans from the General Secretariat for Industry and Small and Medium Enterprises can postpone your refund.
- Bonuses to Social Security are extended for discontinuous fixed contracts that are carried out between the months of February and June in the tourism, commerce and hospitality sectors linked to the tourist activity.
- No application of the rule that regulates the use of slots for the next seasons. This exemption would allow airlines not to be penalized in the future for having reduced their flights in the current circumstances.
Efficient management of Public Administrations
- The procedure for contracting all kinds of goods or services that are necessary is streamlined.
- The Ministry of Finance is empowered to make transfers between the different budgetary sections in order to reinforce the financing of health policy by the State.
MEASURES APPROVED IN THE COUNCIL OF MINISTERS OF MARCH 17, 2020
The Government approved in the Council of Ministers of March 17, 2020 a Royal Decree-Law with measures aimed at supporting families; help workers and self-employed workers whose income is reduced; support companies with liquidity and flexibility to preserve employment, and strengthen the fight against disease, with an amount with a global amount of public guarantees for liquidity of up to 100,000 million euros, which will involve a mobilization of resources of up to 200,000 million euros, and with an expense of 5,000 million.
Measures to guarantee liquidity and stability of companies
With the aim that freelancers, SMEs and companies can cope with the drop in income derived from the reduction of their activity, a series of measures are enabled to facilitate liquidity, as well as others aimed at giving companies flexibility in the face of current situation:
- The state, through the ICO, will grant guarantees of up to 100,000 million euros to facilitate the granting of loans to companies and the self-employed that they need it to cover their currency, payment of bills or other concepts, thus allowing its operation and protecting activity and employment.
- I know authorizes the creation of an insurance coverage line on behalf of the State through CESCE for an amount of up to 2,000 million euros for working capital financing operations.
- I know extends the ICO debt limit by 10,000 million euros in order that it can increase the existing lines of financing for freelancers and companies.
- In general, the answer period to the requirements and other procedures of the Tax Agency is extended.
- The suspension of public contracts is regulated whose execution is affected by COVID-19.
- Measures are included to ensure that mercantile companies adapt their activity to the current circumstances, introducing flexibility for the development of meetings of governing bodies, formulation of accounts, holding of shareholders' meetings or deadlines for the presentation of registry documents. Likewise, the deadlines for an insolvent debtor to request the bankruptcy are relaxed.
Measures to make the economy more flexible, preserve employment and support workers
The relief and flexibility measures for companies included in the Royal Decree-Law are aimed at solving possible temporary liquidity tensions and favoring the maintenance of employment. For this, the following provisions are articulated:
- In order to facilitate the temporary employment adjustment procedures (ERTEs), the procedure is simplified without involving a decrease in guarantees and legal certainty.
- I know the conditions of access to benefits by workers are extended and exemptions are expected in social contributions of companies conditioned to the preservation of employment in the case of Temporary Employment Regulation Files due to force majeure derived from the effects of COVID-19.
- Workers in ERTE who do not meet unemployment requirements will receive the unemployment benefit
- Workers with ERTE and with the right to unemployment will not consume the benefit during this period in case of later dismissal.
- I know approves an extraordinary benefit for cessation of activity for the self-employed.
- I know they make the conditions more flexible to favor conciliation and off-site work, in the case of childcare, the elderly or dependent persons, defining the situations that justify the absence of the job and facilitating the right to the adaptation of the day as a less adverse mechanism for both the worker and the company itself.
- I know makes it easier for companies to enable remote work.
- I know They have various support measures for SMEs to promote their adaptation to the digital environment through the Acelera program, endowed with 250 million euros, aimed at aid for R & D & I, and to finance investment in the acquisition of equipment or non-contact work solutions.
Support measures for vulnerable families and groups
The direct support measures for the most vulnerable groups are one of the main axes on which this Royal Decree Law is articulated. With this objective, the following measures have been adopted:
- A moratorium of one month in the payment of mortgage loans for vulnerable groups.
- I know provides the right to receive unemployment benefits in cases of semi-annual renewal without the need to submit a renewal application. In the same way, even if the mandatory income statement is not presented, that of the subsidy for people over 52 will be maintained.
- I know creates a state program financed with 300 million euros to guarantee home care for dependent people.
- Protected subjects are expanded in the field of light, gas and water supply, and cutting them is impossible for consumers who have vulnerable status. Guarantees of non-interruption of telecommunications services are also established.
- The term of validity of the electric social bond will be automatically extended until September 15, 2020 to prevent beneficiaries from receiving the discounts and benefits provided in the regulations.
- I know suspends the review for the next six months of maximum retail prices for liquefied petroleum gases packaged to avoid rising prices.
- The period established by law for the return of goods is suspended.
- Local Corporations are allowed to use 300 million euros of the 2019 surplus to finance investment expenses in the area of social services and social promotion.
Measures to support research on COVID-19
The research support measures aim to promote knowledge about the disease for the development of drugs and vaccines that help contain the impact of future outbreaks. To this end, the following measures have been taken:
- In the budgetary area, the limits and requirements established in the application criteria of the extension for 2020 of the General State Budgets in force in the year 2019, will not apply to the spending files necessary for the management of the health emergency caused by the COVID-19.
- Extraordinary credits are authorized to provide the Higher Council for Scientific Research and the Carlos III Health Institute of the precise resources to face the scientific and research challenges derived from the current health emergency.
Other measures
- I know enables the Government to control the taking of significant shares in companies in strategic sectors.
- I know streamline customs procedures for import and export in the industrial sector for six months.
- I know They will grant guarantees to facilitate the lengthening of the terms of repayment of loans granted to farms to cope with the drought of 2017.
- I know extends the validity of the National Identity Document for one year of those holders of a DNI that expires from the entry into force of the alarm state.
The extraordinary measures included in this Royal Decree-Law will be in force generally for one month, with the possibility of extension after evaluating the situation.
ANNEXED
March 10, 2020, the Government adopted Royal Decree Law 6/2020 to provide that the situation of People forced to stay at home for health reasons are considered temporary disability due to an occupational accident. Thus, people in preventive isolation and those who have been infected with the virus are considered Temporary Disability assimilated to sick leave due to Work Accident.
This improves performance for both isolated and coronavirus-infected individuals, since 75% of the regulatory base charged to the Administration starts to be received from the day following the sick leave. The objective is to make it easier for citizens to follow the instructions of the health authorities proposed for public health reasons, so that the cost does not fall on families and companies.
