How EU Covid-19 funds for the recovery of our business sector will be shared out

If there is one thing the Covid-19 pandemic has done, it is to make us rethink the society we live in, our healthcare system and, above all, our economy. A phenomenon that has left many of our businesses in a precarious situation in which mere survival is considered a success.

The European Council has designed a recovery plan for Europe. According to ACCIÓ (L’agència de la competitivitat per l’empresa de la Generalitat de Catalunya), this aid, approved on 21 July 2020, will give a boost to EU economies after the debacle caused by the pandemic. From this money comes the economic package known as Next Generation EU, with a total of 750,000 million euros. These funds are being distributed to EU member states to help their economic recovery, and will be used to finance all kinds of projects.

From these funds, 140 billion euros will be allocated to Spain, some in direct aid and the rest indirectly, in credits.

 

How this aid will be distributed to businesses:

 

According to Royal Decree-Law 5/2021, of 12 March, on extraordinary measures to support business solvency in response to the Covid-19 pandemic, the first aid package will be distributed as follows:

  • Line of direct aid to the self-employed and businesses.

Managed by the Autonomous Communities and with a budget of 7,000 million euros, they will be used to cover the cost of payments to suppliers and other creditors, and also for expenditure on energy services and supplies.

  • Restructuring of financial debt

It gives the government more flexibility in giving loans with public guarantees, thus allowing the incorporation of ICO lines.

Three billion euros in direct and extraordinary aid to reduce the burden of loans with public guarantees.

  • A recapitalisation fund for companies

Designed for medium-sized companies that were viable before the pandemic, but that have solvency difficulties and cannot access the fund managed by the Sociedad Estatal de Participaciones Industriales (SEPI).

  • Extended period before the automatic triggering of insolvency proceedings

It aims to provide a greater margin to re-establish their financial equilibrium before entering insolvency proceedings.

Likewise, the period in which tax debts can be paid without interest for late payment is extended to four months.

A set of economic aid measures which, despite being subject to certain requirements, are a breath of fresh air that is more than necessary in the difficult times we find ourselves in.

On the other hand, and as we have seen in previous crises, this aid is rarely free, and sooner or later it has to be paid back whether we like it or not, generally through financial austerity measures.

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The European Council has designed a recovery plan for Europe. According to ACCIÓ (L’agència de la competitivitat per l’empresa de la Generalitat de Catalunya), this aid, approved on 21 July 2020, will give a boost to EU economies after the debacle caused by the pandemic. From this money comes the economic package known as Next Generation EU, with a total of 750,000 million euros. These funds are being distributed to EU member states to help their economic recovery, and will be used to finance all kinds of projects.

From these funds, 140 billion euros will be allocated to Spain, some in direct aid and the rest indirectly, in credits.

 

How this aid will be distributed to businesses:

According to Royal Decree-Law 5/2021, of 12 March, on extraordinary measures to support business solvency in response to the Covid-19 pandemic, the first aid package will be distributed as follows:

  • Line of direct aid to the self-employed and businesses.

Managed by the Autonomous Communities and with a budget of 7,000 million euros, they will be used to cover the cost of payments to suppliers and other creditors, and also for expenditure on energy services and supplies.

  • Restructuring of financial debt

It gives the government more flexibility in giving loans with public guarantees, thus allowing the incorporation of ICO lines.

Three billion euros in direct and extraordinary aid to reduce the burden of loans with public guarantees.

  • A recapitalisation fund for companies

Designed for medium-sized companies that were viable before the pandemic, but that have solvency difficulties and cannot access the fund managed by the Sociedad Estatal de Participaciones Industriales (SEPI).

  • Extended period before the automatic triggering of insolvency proceedings

It aims to provide a greater margin to re-establish their financial equilibrium before entering insolvency proceedings.

Likewise, the period in which tax debts can be paid without interest for late payment is extended to four months.

A set of economic aid measures which, despite being subject to certain requirements, are a breath of fresh air that is more than necessary in the difficult times we find ourselves in.

On the other hand, and as we have seen in previous crises, this aid is rarely free, and sooner or later it has to be paid back whether we like it or not, generally through financial austerity measures.

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  1. josé belot domenech says:

    Doncs es, exactament, aixo : privatitzar beneficis i col.lectivitzar les pèrdues.
    Aixi els grans capitalistes que sempre ens explican que es remuneran pels rics que prenen ens mostran clarament que es fals; nosaltres sempre perdem i ells sempre guanyan !

  2. Mercè Comas says:

    Demanar ajudes i subvencions comporta pèrdua de temps i despeses. Un cop valorat hi ha petits empresaris i autònems que ho deixen córrer o no ho comproven fins que hi estan ficats. Després tindran l’ AEAT a sobre demanant justificants.
    Però vaja, benvinguts siguin . Un o altre en treurà profit.
    Feu bé d’ explicar-ho amb el vídeo. No serà mannà que cau del cel

    • Jordi Coll Planas says:

      Hola, Mercè. Doncs si, és ben bé així…, tot ha esdevingut prou complex i a hores d’ara no queda massa clar què acabarà passant amb tot plegat… Moltes gràcies pel teu comentari.

      2 months ago
  3. Albert Chic Giménez says:
  4. Josep Ruaix says:

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