Greece Announces New €1bn Covid-19 Relief to Shield Jobs

Greek ministers of finance, Christos Staikouras, and labor, Kostis Hatzidakis. Photo source: cstaikouras.gr

Greek Finance Minister Christos Staikouras announced a new 1-billion-euro round of Covid-19 support aimed at keeping impacted businesses above water and jobs in place.

Aid actions to support companies, employees, and households affected by the coronavirus pandemic have so far exceeded 14 billion euros and 38 billion euros over the 2020-2021 period.

Measures include:

– the deferral of tax and social security contributions to the end of the adjustment period. This applies to businesses active in retail, catering/F&B, tourism, culture, sports, transport, and other enterprises that have remained closed

– businesses that were forced to remain closed due to government order will not be required to pay rent in April, at the same time, previous rental reduction measures continue to apply for certain categories. Property owners will be compensated 80 percent of rents not collected

Photo source: Athens Chamber of Commerce and Industry (acci.gr)

– employees on furlough are entitled to a 40 percent rent reduction for their main residence and for family student residence

– companies impacted by Covid-19 included on the government’s revised KAD list are entitled to 40 percent off their business entity rent

The government is preparing to compensate property owners in the second half of April for February and March rents. Staikouras said the sum will reach 180 million euros. Other actions include extending debt settlement periods.

Relief measures for employment extended

With regard to employment, Labor Minister Kostis Hatzidakis said all previously applied measures for the employed and unemployed would be extended for April.

Hatzidakis said the new round of measures to support labor in April amount to 685 million euros.

“With the measures we announced today for April, the budget for the labor ministry’s ‘safety net’ exceeds 7.1 billion euros, “ said Hatzidakis.

More specifically, for April, measures include:

– businesses impacted by lockdown orders can place employees on furlough programs. These workers will receive a monthly 534-euro subsidy with the government covering employers’ social security contributions. The measure concerns employees of businesses included on the updated KAD activity list

– suspended employees will receive their annual Easter bonus based on furlough subsidy

– employers’ insurance contributions for employees working in 12-month hotels will be subsidized through to June 2021

– arts performers included on the register of artists will receive a special purpose subsidy for March

– cultural venues including theaters, cinemas, music stages, and concert halls will be subsidized for vacant seats for March

– tourism-related occupations, including tour leaders and tourist guides will receive 534 euros in special purpose compensation for March

– unemployment benefits that expire in March are extended by two more months

– the Syn-Ergasia job retainment program has been extended until June 2021 and will include an Easter bonus for those participating in the program over the January-April 2021 period.