Implementing decision 2022/98 - Amendment of Implementing Decision (EU) 2020/1561 granting temporary support to Hungary to mitigate unemployment risks following the COVID-19 outbreak

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1.

Current status

This implementing decision has been published on January 26, 2022 and should have been implemented in national regulation on the same day at the latest.

2.

Key information

official title

Council Implementing Decision (EU) 2022/98 of 25 January 2022 amending Implementing Decision (EU) 2020/1561 granting temporary support under Regulation (EU) 2020/672 to Hungary to mitigate unemployment risks in the emergency following the COVID-19 outbreak
 
Legal instrument implementing decision
Number legal act Implementing decision 2022/98
Regdoc number ST(2021)15256
Original proposal COM(2021)825 EN
CELEX number i 32022D0098

3.

Key dates

Document 25-01-2022; Date of adoption
Publication in Official Journal 26-01-2022; OJ L 17 p. 42-46
Effect 26-01-2022; Takes effect Date notif. See Art 2
End of validity 31-12-9999
Notification 26-01-2022

4.

Legislative text

26.1.2022   

EN

Official Journal of the European Union

L 17/42

 

COUNCIL IMPLEMENTING DECISION (EU) 2022/98

of 25 January 2022

amending Implementing Decision (EU) 2020/1561 granting temporary support under Regulation (EU) 2020/672 to Hungary 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)

Further to a request from Hungary on 6 August 2020, the Council, by means of Implementing Decision (EU) 2020/1561 (2), granted financial assistance to Hungary in the form of a loan amounting to a maximum of EUR 504 330 000 with a maximum average maturity of 15 years, with a view to complementing Hungary’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.

 

(2)

The loan was to be used by Hungary to finance measures similar to short-time work schemes and health-related measures, as referred to in Article 3 of Implementing Decision (EU) 2020/1561.

 

(3)

The COVID-19 outbreak has immobilised a substantial part of the labour force in Hungary. This has led to repeated sudden and severe increases in public expenditure in Hungary in respect of a new measure, namely a one-off income support scheme for the self-employed in sectors affected by protection measures and measures referred to in Article 3, points (f), (g), (h), (i) and (j), of Implementing Decision (EU) 2020/1561.

 

(4)

The COVID-19 outbreak and the extraordinary measures implemented by Hungary in 2020 and 2021 to contain that outbreak and its socioeconomic and health-related impact had, and are still having, a dramatic impact on public finances. Hungary had a general government deficit and debt of 8,0 % and 80,1 % of gross domestic product (GDP) respectively by the end of 2020. According to the Commission’s 2021 autumn forecast, Hungary’s general government deficit and debt are forecast to narrow to 7,5 % and 79,2 % of GDP respectively in 2021 and its GDP is projected to increase by 7,4 % in 2021.

 

(5)

On 1 December 2021 Hungary requested further financial assistance from the Union in the amount of EUR 147 140 000 in order to further 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 the outbreak for workers and the self-employed, in particular the measures referred to in recitals (6) to (8).

 

(6)

By means of ‘Government Decree No 485/2020. (XI. 10.)’ (3), Hungary extended until the end of the state of emergency and amended a number of tax-related measures referred to in Article 3, points (f), (g), (h) and (j), of Implementing Decision (EU) 2020/1561. The loan requested by Hungary is intended to cover expenditure for the period from December 2020 until June 2021 only. The decree contains the explicit condition that the beneficiaries are to maintain employment contracts that were in place at the time of the entry into force of the decree and not to terminate such contracts by means of notice from the employer for the duration of the respective measures. The scope of the sectors eligible for support has been modified by Article 1 of ‘Government Decree No 571/2020. (XII. 9.)’ (4), Article 1 of ‘Government Decree No 638/2020. (XII. 22.)’ (5), Article 1 of ‘Government Decree No 105/2021. (III. 3.)’ (6), Article 1 of ‘Government Decree...


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This text has been adopted from EUR-Lex.

5.

Original proposal

 

6.

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