Business in Europe and worldwide has been affected due to the consequences of coronavirus outbreak. Each country has a different strategy when it comes to easing the financial consequences of the outbreak to support the economy during this time. Slovenia has already accepted the first round of financial measures and the proposal for the second round is now in review. But how does it compare to financial measures in other EU countries?
Data d.o.o. has been a leading service provider for supporting entrepreneurs with their business in Slovenia. We offer support in company registration as well as professional accounting services. Additionally, we have our own legal department that can guide you through understanding the Slovenian business legislation.
Each country has opted for a different strategy when it comes to supporting the economy at this time. Some have focused more on the support to small companies, while others offered more financial assistance to bigger businesses. Also, some countries decided to offer favorable loan opportunities, while others decided to offer direct financial support to individuals. Slovenia is one of the countries that tried to cover all of these areas and there are several options available. Our legal advisors can offer support in both applying for credits that the government issued as well as consult on other options which you have currently to ensure liquidity of your company.
Financial measures during coronavirus outbreak – the Netherlands
The government of Netherlands took the stance to try to develop immunity towards the virus. This was mainly by ensuring enough financial resources to hospitals to support the staff who care for sick individuals. Schools and kindergartens remain open as they believe it would affect the society too much if they closed.
Companies that experience the decrease of business can request permission for part-time business hours. They have to prove that they experienced a decrease of at least 20% lasting for 2 weeks up to 24 weeks. The employees can request compensation for unemployment if the employer cannot secure them work during this time.
There are also financial measures for sole proprietors and other small or medium companies. They can apply for MSP credit warranty scheme (BMKB) with intermediaries who are usually banks. The funds are issued as a bridging credit or increasing of the normal credit limit. Here, the scheme can react 75% of the loan amount that the financial institution issued. These financial measures are meant for those companies that:
– have up to 250 full-time employees,
– have yearly income up to 50 million EUR and
– exist at least 3 years.
Financial measures for sole proprietors also include direct support with living expenses. The amount depends on the size of the family. The country will also decrease the interest rate of the tax office to 0,01% for a limited amount of time.
Financial measures of Denmark will cover up to 75% of employee salaries
The Danish government presented a program that will cover 75% of salaries up to 9th June 2020. It will apply for companies who noticed a severe decrease in activity or had to shut down production. The condition is that they will not lay off employees. Also, the employees will have to use 5 days of obligatory yearly vacation leave.
As an additional financial measure, Denmark will also:
– provide funds to banks to ensure company liquidity,
– issue a bank warranty scheme and
– offer loans to companies.
With these the country will guarantee for 70% of the amount of the loans if the companies experience a loss of income 50% or greater. The government will also compensate for the full amount of sick leave of employees from the first day.
What about Germany?
Germany is focusing the financial measures in forms of investment. They will support at-risk industries, partial payments of rent for companies that have to remain closed to due coronavirus and offer liquidity credits to companies. Those sole proprietors that are not eligible for any other form of financial support would receive 15.000 EUR of subsidies. The government also plans to cover compensation for employees who have to work part-time due to these circumstances. The investment plan includes a larger time period – spending 3.1 billion EUR during 2021 and 2024.
Financial measures during coronavirus – Austria
The Austrian government pledged 4 billion EUR to form a fund to ease liquidity problems of companies. They also plan to include:
– deferral of tax payment,
– reducing advance tax payments for personal and corporate income tax,
– enhancing and increasing export.
France – measures in form of economic injections and even nationalization
France has introduced emergency packages, including direct payments to employees, loans and guarantees for businesses, to mitigate the economic impact of the quarantine measures. Financial measures also include a 345 billion EUR economic injection, 45 billion EUR in direct tax breaks and direct government payments to the economy. The government is also ready to nationalize big companies.
Financial measures in Italy – the country which was impacted by coronavirus the most
Italian financial measures include:
– 25 billion EUR in economic support,
– 10 billion EUR for employment and employees; and
– approximately 3.5 billion EUR in aid to the healthcare system.
More specific economic measures include: deferring mortgage payments for families that are affected by shut-down of businesses. Also, self-employed and seasonal workers may apply for a special payment of 600 EUR in March, parents for 600 EUR in assistance to cover childcare costs, prolonging parental leave by 15 days and recognizing quarantine waiting time as sick leave.
Broader economic measures also include 340 billion EUR financial injections into the credit system and a state guarantee of 5 million EUR for SMEs.
Each country is trying their best to ease the current economic situation the best way they know how. Slovenia is preparing a second round of measures that would probably be accepted by Friday. Companies in Slovenia can count on governmental support during this crisis time so that business can thrive in the future. Do not hesitate and turn to DATA for support for your business in Slovenia. For more information, you can write to our email [email protected] You can also contact us over the phone 00386 1 6006 270 or 00386 40 530 718 (Viber, WhatsApp). Additionally, follow us on Facebook.