September 30, 2022

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After two years, the Corona support package will stop, but “not everything goes back to the old”

After two years, the Corona support package will stop, but “not everything goes back to the old”

The government has transferred huge sums to companies under the support package over the past two years. In order to continue to pay employees, companies received approximately 22.5 billion euros. Over 475,000 times, companies have been awarded support.

These numbers will increase slightly, because entrepreneurs have until April 13 to submit an application. Then the application covers the period until today.

As of last Sunday, a total of 8.5 billion euros had been allocated to companies for fixed-cost allowance. It has been used nearly 400,000 times so far.

Cash

The longer the support package lasts, the more criticism will be directed at the public nature of the measures. Peter Haskamp, ​​Director of the Central Planning Bureau (CPB), said in a statement April last year This support has to stop at some point because parts of the economy will freeze.

also in Support package evaluation The CPB concluded that the longer the Corona crisis lasts, the greater its disadvantages. De Nederlandsche Bank has also increasingly pointed out the flaws of the package: it has imposed a heavy burden on public finances and will ultimately disrupt healthy economic dynamics.

Jans worked with entrepreneurs who could no longer survive. “I’ve also advised a number of companies: Stop your company now,” he says. “Make sure the case is settled well and you go to work somewhere.” “You try to keep it upright, but at some point you should be able to throw in the towel.”

recovery

It is not yet clear how the total billion-dollar bill for the support package will be split between the government and businesses. All amounts transferred are advances, based on an estimate by the entrepreneurs themselves of how much they lose their turnover.

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The next period will be governed by a final determination of all subsidies, based on the real sales volume achieved in all periods of the past two years. Companies can also get refunds or get additional funds.

During the first wage support period, from March to May 2020, 70 percent of businesses recovered. For the latest period for which the final determination is known, from January to March 2021, that percentage was 40 percent.