Implementing decision 2021/513 - Granting of temporary support to Estonia to mitigate unemployment risks following the COVID-19 outbreak - Main contents
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official title
Council Implementing Decision (EU) 2021/513 of 22 March 2021 granting temporary support under Regulation (EU) 2020/672 to the Republic of Estonia to mitigate unemployment risks in the emergency following the COVID-19 outbreak| Legal instrument | implementing decision |
|---|---|
| Number legal act | Implementing decision 2021/513 |
| Original proposal | COM(2021)104  |
| CELEX number i | 32021D0513 |
| Document | 22-03-2021; Date of adoption |
|---|---|
| Publication in Official Journal | 24-03-2021; OJ L 103 p. 6-9 |
| Effect | 24-03-2021; Takes effect Date notif. See Art 4 |
| End of validity | 31-12-9999 |
| Notification | 04-03-2021; {titleAndReference.draft.disclaimer.new|http://publications.europa.eu/resource/authority/fd_365/titleAndReference.draft.disclaimer.new} |
24.3.2021 |
EN |
Official Journal of the European Union |
L 103/6 |
COUNCIL IMPLEMENTING DECISION (EU) 2021/513
of 22 March 2021
granting temporary support under Regulation (EU) 2020/672 to the Republic of Estonia 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 4 February 2021, Estonia 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 Estonia 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 Autumn forecast, Estonia was expected to have a general government deficit and debt of 5,9 % and 17,2 % of gross domestic product (GDP) respectively by the end of 2020. According to the Commission’s 2021 Winter interim forecast, Estonia’s GDP is projected to have decreased by 2,9 % in 2020. |
(3) |
The COVID-19 outbreak has immobilised a substantial part of the labour force in Estonia. This has led to a sudden and severe increase in public expenditure in Estonia 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 (9). |
(4) |
Government Regulation No 130 ‘Tööhõiveprogramm 2017–2020’ of 17 November 2016, as amended in 2020 (2), which is referred to in Estonia’s request of 4 February 2021, introduced a short-term labour market scheme for the preservation of jobs (the scheme is in force as from 23 March 2020). The objective was to support private sector employees whose salaries or working hours had been temporarily reduced because of the substantial impact of the emergency situation by providing employees with up to 70 % of their average monthly salary or wage, capped at EUR 1 000 per employee per month. It was a temporary scheme for the period of the emergency situation from March to May 2020. Given the continued impact of the emergency situation, Regulation No 130 was amended again (3) and applied, as amended, until the end of June 2020. Conditions for the furlough scheme were adjusted so that government support to an employee was reduced to up to 50 % of the employee’s average monthly salary or wage and capped at EUR 800 per employee. In order to receive the government support for employees, companies had to pay at least EUR 150 (on a gross basis) per employee per month, so that each employee received monthly earnings of at least EUR 584, which is equal to the minimum wage. |
(5) |
Government Regulation No 26 ‘Erivajadusega lapse vanema toetuse saamise ja maksmise tingimused ning toetuse arvutamise alused’, of 9 April 2020 (4), which is referred to in Estonia’s request of 4 February 2021, introduced an allowance for the preservation of earnings for parents who during the emergency situation had to suspend work to take care of their children with special educational needs. It was a temporary measure for the period of the emergency situation from 12 March to 17 May 2020. The allowance was calculated on the basis of social tax paid on the parent’s salary or wage in 2019. The support covered 70 % of the average daily salary or wage of... |
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