Implementing decision 2020/1347 - Granting of temporary support to Spain to mitigate unemployment risks following the COVID-19 outbreak - Main contents

EN

Official Journal of the European Union

L 314/24

On 3 August 2020, Spain 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 Spain 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, Spain was expected to have a general government deficit and debt of 10,1 % and 115,6 % of gross domestic product (GDP) respectively by the end of 2020. According to the Commission’s 2020 Summer interim forecast, Spain’s GDP is projected to decrease by 10,9 % in 2020.

The COVID-19 outbreak has immobilised a substantial part of the labour force in Spain. This has led to a sudden and severe increase in public expenditure by Spain in respect of the short-time work scheme, similar schemes specifically targeted at the self-employed and workers in the tourism sector, and in support of public health measures, as set out in recitals (4) to (9).

More specifically, ‘Royal Decree-Law 8/2020’, ‘Royal Decree-Law 11/2020’ and ‘Royal Decree-Law 24/2020’, which are referred to in Spain’s request of 3 August 2020, introduced wage compensation of up to 70 per cent of the employees’ basic salary for employees furloughed under the short-time work scheme ‘ERTE’ (Expediente de Regulación Temporal de Empleo). The compensation is capped at a maximum of EUR 1 098,09 per month, which may be increased to EUR 1 254,96 per month or EUR 1 411,83 per month, depending on the beneficiary’s number of dependent children.

The authorities have also introduced a full or partial social security contribution exemption, depending on the employers’ size and the month of the year, in respect of employees participating in ‘ERTE’. The exemption consists in forgone revenues for the Government, which for the purpose of the implementation of Regulation (EU) 2020/672 can be considered equivalent to public expenditure.

For the self-employed, the authorities have introduced a benefit for the ‘cessation of activity’ (that is to say, the suspension, in full or in part of self-employed activity) and accompanying social security contribution exemptions. The measure provides monthly payments whilst businesses are required to be closed or, if opened, where turnover has been reduced by more than 75 %.

Specific support measures, consisting of benefits and social security contribution exemptions for employees participating in ‘ERTE’, have also been introduced for ‘permanent seasonal workers’ who have not been able to return to their activity on the scheduled dates due to the COVID-19 outbreak, on the basis of ‘Royal Decree-Law 15/2020’ and in application of ‘Royal Decree-Law 8/2020’, which is referred to in Spain’s request of 3 August 2020.

‘Royal Decree Law 8/2019’, ‘Royal Decree Law 12/2019’...