Implementing decision 2020/1561 - Granting of temporary support to Hungary to mitigate unemployment risks following the COVID-19 outbreak - Main contents

EN

Official Journal of the European Union

L 357/24

On 6 August 2020, Hungary 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 Hungary 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, Hungary was expected to have a general government deficit and debt of 5,2 % and 75,0 % of gross domestic product (GDP) respectively by the end of 2020. According to the Commission’s 2020 Summer interim forecast, Hungary’s GDP is projected to decrease by 7,0 % in 2020.

The COVID-19 outbreak has immobilised a substantial part of the labour force in Hungary. This has led to a sudden and severe increase in public expenditure in Hungary in respect of similar measures to short-time work schemes and health-related measures, as set out in recitals (4) to (14).

‘Government Resolution 2080/2020 on the national development of accommodation’, as it is referred to in Hungary’s request of 6 August 2020, introduced temporary support for upgrading accommodation (conversion, expansion, renovation of premises, acquisition of equipment) in tourist destinations in order to retain the existing workforce. Only the part of expenditure related to the support of the self-employed and one-person companies has been requested. The measure can be considered to be a similar measure to short-time work schemes, as referred to in Regulation (EU) 2020/672, as it aims to protect the self-employed or similar categories of workers from reduction or loss of income.

The ‘Decree of Minister of Agriculture No 25/2020. (VI. 22.)’ (2), ‘Decree of Minister of Agriculture No 26/2020. (VI. 22.)’ (3) and ‘Decree of Minister of Agriculture No 30/2020. (VI. 22.)’ (4), as they are referred to in Hungary’s request of 6 August 2020, introduced a one-off grant support for food-processing companies, horticultural companies in the sectors of growing non-perennial crops and of plant propagation, and fish farming companies respectively. The support is conditional on the entity maintaining their employees until December 2020. As regards the part of the expenditure related to support for the self-employed and one-person companies, the measure can be considered to be a similar measure to short-time work schemes, as referred to in Regulation (EU) 2020/672, as it aims to protect the self-employed or similar categories of workers from reduction or loss of income.

‘Government Decree No 59/2020. (III. 23.)’ (5) and ‘Act LVIII of 2020’ (6), as they are referred to in Hungary’s request of 6 August 2020, extended childcare benefits to employees and the self-employed, which would have expired due to age restrictions between 11 March 2020 and 30 June 2020, which was the period of the state of alarm. Those childcare benefits can be considered to be a similar measure to...