Implementing decision 2020/1354 - Granting of temporary support to Portugal to mitigate unemployment risks following the COVID-19 outbreak - Main contents
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official title
Council Implementing Decision (EU) 2020/1354 of 25 September 2020 granting temporary support under Regulation (EU) 2020/672 to the Portuguese Republic to mitigate unemployment risks in the emergency following the COVID-19 outbreak| Legal instrument | implementing decision |
|---|---|
| Number legal act | Implementing decision 2020/1354 |
| Original proposal | COM(2020)473  |
| CELEX number i | 32020D1354 |
| Document | 25-09-2020; Date of adoption |
|---|---|
| Publication in Official Journal | 29-09-2020; OJ L 314 p. 49-54 |
| Effect | 28-09-2020; Takes effect Date notif. See Art 5 |
| Deadline | 30-03-2021; See Art 4 |
| End of validity | 31-12-9999 |
| Notification | 28-09-2020 |
29.9.2020 |
EN |
Official Journal of the European Union |
L 314/49 |
COUNCIL IMPLEMENTING DECISION (EU) 2020/1354
of 25 September 2020
granting temporary support under Regulation (EU) 2020/672 to the Portuguese Republic to mitigate unemployment risks in the emergency following the COVID-19 outbreak
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of a European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19 outbreak (1), and in particular Article 6(1) thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1) |
On 11 August 2020, Portugal 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. |
(2) |
The COVID-19 outbreak and the extraordinary measures implemented by Portugal 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, Portugal was expected to have a general government deficit and debt of 6,5 % and 131,6 % of gross domestic product (GDP) respectively by the end of 2020. According to the Commission’s 2020 Summer interim forecast, Portugal’s GDP is projected to decrease by 9,8 % in 2020. |
(3) |
The COVID-19 outbreak has immobilised a substantial part of the labour force in Portugal. This has led to a sudden and severe increase in public expenditure in Portugal in respect of short-time work schemes and similar measures, as well as the recourse to relevant health-related measures related to the COVID-19 outbreak, as set out in recitals (4) to (17). |
(4) |
‘Law No 7/2009 of 12 February’, which is referred to in Portugal’s request of 11 August 2020, introduces a measure to support the maintenance of employment contracts through the temporary interruption of work or reduction of normal working time enshrined in Portugal’s Labour Code. The measure provides a benefit to eligible firms to cover 70 % of the employees’ compensation, with employees’ compensation equalling two-thirds of their normal gross salary. This two-thirds correction is subject to a lower limit equal to the national minimum salary and an upper limit equal to three times the national minimum salary. Eligible firms must have suspended their business activity or be experiencing significant revenue losses. |
(5) |
‘Decree-Law No 10-G/2020 of 26 March’ and ‘Decree-Law No 27-B/2020 of 19 June’, which are referred to in Portugal’s request of 11 August 2020, have been the basis for the introduction of a number of measures to address the impact of the COVID-19 outbreak. This includes the new and simplified special support for the maintenance of employment contracts through the temporary interruption of work or reduction of normal working time. This measure is similar to the measure referred to in recital (4) but has simplified procedures to allow swifter access to funds. The measure provides a benefit to eligible firms to cover 70 % of the employees’ compensation, with employees’ compensation equalling two-thirds of their normal gross salary, as well as the exemption from the employer’s social security contributions. This two-thirds correction is subject to a lower limit equal to the national minimum salary and an upper limit equal to three times the national minimum salary. Eligible firms must have suspended their business activity or experienced revenue losses of at least 40 % in the period of 30 days preceding the request for support, compared with the same month of the previous year or with the... |
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