Implementing decision 2020/1342 - Granting of temporary support to Belgium to mitigate unemployment risks following the COVID-19 outbreak - Main contents

EN

Official Journal of the European Union

L 314/4

On 7 August 2020, Belgium requested financial assistance from the Union with a view to complementing its national efforts to address the impact of the COVID-19 outbreak and respond to the socioeconomic consequences of the outbreak for workers and the self-employed.

The COVID-19 outbreak and the extraordinary measures implemented by Belgium to contain the outbreak and its socioeconomic and health-related impact are expected to have a dramatic impact on public finances. According to the Commission’s 2020 Spring forecast, Belgium was expected to have a general government deficit and debt of 8,9 % and 113,8 % of gross domestic product (GDP) respectively by the end of 2020. According to the Commission’s 2020 Summer interim forecast, Belgium’s GDP is projected to decrease by 8,8 % in 2020.

The COVID-19 outbreak has immobilised a substantial part of the labour force in Belgium. This has led to a sudden and severe increase in public expenditure by Belgium in respect of the temporary unemployment scheme (‘chômage temporaire/tijdelijke werkloosheid’), the COVID-19 replacement income for the self-employed (the ‘COVID-19 bridging right’), the COVID-19 parental leave, and a number of regional and community income support schemes, and in support of public health measures, as set out in recitals (4) to (8).

The ‘Arrêté royal du 30 mars 2020/Koninklijk besluit van 30 maart 2020’ (2), which is referred to in Belgium’s request of 7 August 2020, adapted the temporary unemployment scheme (‘chômage temporaire/tijdelijke werkloosheid’) to COVID-19, which provides compensation for employees whose work is reduced or suspended because of a decreased workload or the social distancing measures imposed by the Government. That temporary unemployment scheme existed before the COVID-19 pandemic, but the requirements to access the scheme were adapted to COVID-19 and the application procedure was further eased. Furthermore, the allowance for temporary unemployment was increased from 65 % to 70 % of the daily average wage (capped at EUR 2 754,76 gross per month). In addition, a daily premium of EUR 5,36 was introduced.

The ‘Loi du 23 mars 2020/Wet van 23 maart 2020’ (3), which was referred to in Belgium’s request of 7 August 2020, extended the existing replacement income for the self-employed, that is, the ‘bridging right’ (‘droit passerelle/overbruggingsrecht’), by the introduction of a ‘COVID-19 bridging right’. That is a benefit which is provided where social distancing measures imposed by the Government have led to a total or partial interruption of self-employment activities or to a voluntary interruption of at least seven consecutive calendar days in a month. Starting from June 2020, the allowance targets the self-employed who have restarted their activity but still face a reduction in turnover compared to 2019. The self-employed who cannot yet restart their activity can still benefit from the allowance but have to prove that this is due to COVID-19 restrictions.

The ‘Arrêté royal n° 23 du 13 mai 2020/Koninklijk besluit nr. 23...