The government allocates 2.2 billion euros for this. The bulk of this, 1.5 billion, is earmarked for the return of wage support, in the form of a NOW scheme. Entrepreneurs who suffer a loss of at least 20 percent of their turnover due to the Corona measures can apply for it. After that, 85 percent of their salary bill is paid.
In addition, the provision for fixed costs (TVL) will increase. The Cabinet had already falsified this support after previous measures. But due to the new restrictions, entrepreneurs are now being compensated 100 percent instead of 85 percent of their costs.
In addition, the option to request a tax deferral will return. The refund rate for tax authorities will also remain 0.01% for now. It will not rise again in steps to the usual level of 4 per cent from July next year.
The government allocates another 68 million euros for the cultural and creative sector. In addition, another 40 million euros has been allocated to urge linking job seekers with employers in the current tight labor market.
The government had suspended the support packages from the beginning of October, as they also had a negative impact on the economy. For example, companies that were already on the verge of collapse even without Corona have been artificially kept alive and employees who could be exploited elsewhere are still working there.
“It hurts the economy, it doesn’t always end up in the right places and it makes huge use of tax resources,” Cabinet says of the new subsidy. The combination of measures and a broad combination is “unsustainable in the long term”. Over time, the government wants to “find a different balance between the risks of entrepreneurship on the one hand and the use of public resources on the other.”
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