Implementing decision 2021/676 - Amendment of Implementing Decision (EU) 2020/1352 granting temporary support to Malta to mitigate unemployment risks following the COVID-19 outbreak - Main contents

EN

Official Journal of the European Union

L 144/3

Further to a request from Malta on 7 August 2020, on 25 September 2020 the Council granted financial assistance to Malta in the form of a loan amounting to a maximum of EUR 243 632 000 with a maximum average maturity of 15 years, with a view to complementing Malta’s national efforts to address the impact of the COVID-19 outbreak and respond to the socioeconomic consequences of that outbreak for workers and the self-employed.

The loan was to be used by Malta to finance the short-time work schemes, similar measures and health-related measures referred to in Article 3 of Council Implementing Decision (EU) 2020/1352 (2).

The COVID-19 outbreak continues to immobilise a substantial part of the labour force in Malta. This has led to a sudden and severe increase in public expenditure in Malta in respect of the measure referred to in Article 3, point (a), of Implementing Decision (EU) 2020/1352.

The COVID-19 outbreak and the extraordinary measures implemented by Malta in 2020 and 2021 to contain that outbreak and its socioeconomic and health-related impact have had and continue to have a dramatic impact on public finances. According to the Commission’s 2020 autumn forecast, Malta was expected to have a general government deficit and debt of 9,4 % and 55,2 % of gross domestic product (GDP) respectively by the end of 2020. In 2021, Malta’s general government deficit is forecast to narrow to 6,3 % of GDP while debt is forecast to increase to 60,0 % of GDP. According to the Commission’s 2021 winter interim forecast, Malta’s GDP is projected to increase by 4,5 % in 2021.

On 10 March 2021, Malta requested further financial assistance from the Union of EUR 177 185 000, with a view to continuing to complement its national efforts undertaken in 2020 and 2021 to address the impact of the COVID-19 outbreak and respond to the socioeconomic consequences of that outbreak for workers and the self-employed. In particular it concerns the measure set out in recital (6).

‘Malta Enterprise Act (Chap. 463 of the Laws of Malta)’/’L-Att dwar il-Korporazzjoni għall-Intrapriża ta’ Malta (Kap. 463 tal-Liġijiet ta’ Malta)’ and ‘Government Notice No 389 of 13 April 2020’/’Notifikazzjoni tal-Gvern Nru 389 tat-13 ta’ April 2020’, which are referred to in Article 3, point (a), of Implementing Decision (EU) 2020/1352, introduced a COVID-19 wage supplement, which covers employees and the self-employed, to address the disruption caused by the COVID-19 outbreak. In the period from March to June 2020, full-time employees working in the sectors hardest hit by the crisis, listed in Annex A referred to in Government Notice No 389 were eligible for wage support of EUR 800 per month. In less affected sectors, listed in Annex B referred to in Government Notice No 389, full-time employees were eligible to receive EUR 160 per month. Support was available also to part-time employees for a lower amount. In July 2020 the lists of sectors included in the two annexes were revised.Sectors previously supported under the...