Portugal’s economic plan to help businesses and families

in News · 05-06-2020 12:42:00 · 3 Comments

The Government has presented the Economic and Social Stabilization Plan, to deal with the effects of the Covid-19 pandemic, which includes measures such as the automatic extension of unemployment benefit and the allocation of extra family allowance.

At a press conference after a meeting of the Council of Ministers, in the Palácio da Ajuda, in Lisbon, the Prime Minister, António Costa, presented the lines of the programme that will frame the future Supplementary Budget, at a time when the country is in a state of calamity, from 3 May to 14 June, after three consecutive periods in a state of emergency, since 19 March.

Here are some essential points of the country's Economic and Social Stabilisation Plan (PEES):

Income protection

- Automatic extension of unemployment benefits at the end of the year.

- Single allocation, in September, of an amount “corresponding to the base amount of the family allowance”, for all children in the 1st, 2nd and 3rd levels.

- Allocation of one-off extraordinary support for workers who had a reduction in income, which will be paid in July, “to the amount of the loss of income for a month of lay-off”, between €100 and €351.

- Alteration of the reference period in the Social Insertion Income (RSI) and in the family allowance, to ensure the protection of families who experienced an “abrupt drop” in income.

Strengthening of the National Health Service (SNS)

- Hiring of more than 2,700 health professionals until December, to “increase the response capacity of the SNS in its different dimensions”.

- Reinforcement of the intensive care response through an investment in order to reach the European average of 11.5 beds of intensive care per 100,000 inhabitants.

- Enhancement of public health through modernisation of the epidemiological surveillance system, in order to “quickly identify outbreaks of infection and transmission chains in order to prevent the spread” of the pandemic.

Universal access to digital schooling

- Investment of €400 million to ensure universal access to and use of digital educational resources, such as, for example, the purchase of computers, connectivity and software licenses for public schools, giving priority to students covered by support under the scope of school social action.

- This process will also include the “dematerialisation of school textbooks and the production of new digital resources”, as well as the digital training of teachers.

Culture

- Attribution of social support for these professionals, with activities corresponding to the performing arts, who are not employees.

- Payment of two instalments at one and a half times, corresponding to three times €438, discounting other social benefits.

- Allocation of €3 million for “independent rooms” for cultural activities (such as, for example, movie theatres, shows and theatres) so that they can resume activity and €750,000 for adapting the rooms to the context of the Covid.

Housing

- Creation of a social inclusion programme for homeless people through housing first projects, with technical support teams.

- Support for municipalities' programmes to convert local accommodation into long-term rental housing at affordable prices, by doubling the investment provided by the municipalities.

- Rehabilitation of 4,000 dwellings, within the scope of the execution of conservation and maintenance works in the remaining housing stock of the Institute of Housing and Urban Rehabilitation (IHRU).

Professional requalification

- Encourage the inclusion of adults over 23 in higher education.

- Short initial training in polytechnic higher education and promotion of postgraduate courses with employers, scientific institutions and innovation centres.

- Support for hiring graduates.

Asbestos removal in schools

- Launch of a programme, worth €60 million, to eradicate asbestos in 700 schools in the country, taking advantage of the closure of these educational establishments because of the pandemic.

Simplified lay-off regime

Maintenance of the simplified lay-off regime until the end of July and the creation of three “alternative mechanisms” as of that month:

- Companies that remain closed as determined by the Government (as is the case, for now, of nightclubs) continue to benefit from this regime.

- Companies with a drop in sales between 40% and 60% (or higher) can benefit from a support mechanism for the resumption of activity, between August and the end of the year.

- Creation of an extraordinary financial incentive that can be unique or distributed over six months.

Financing for companies

- Extension of the moratorium until March 31, 2021 to suspend the payment of bank loan instalments.

- Increase of credit lines with State guarantee to €13 million.

Development Bank

- Creation of a Development Bank to function as a promotional development structure that will integrate the Financial Development Institution (IFD), the Investment Society (SPGM) and the SME (Small and Medium Enterprises) Investment.

Public procurement

- Streamlining public procurement processes, reducing inherent bureaucracy and other “legal constraints”, in addition to the exemption from the Court of Auditors' prior visa for contracts up to €750 thousand.

Justice

- Specialisation of courts and improvement of electronic procedures to increase the efficiency of administrative jurisdiction.

- Alternative dispute resolution procedure by supporting reconciliation in over-indebtedness.

- Creation of an exceptional regime to reduce the legal costs in case of terms of the processes by agreement, transaction or withdrawal.


Comments:

Hello Sir/Madam
This is Abdus Samad living in Lisbon.
As we heard from around the world
And read nice articles about how government helping businesses .
Unfortunately in Portugal small businesses suffering the much and the government not cares.I am sharing It From any historian imagination.its about me and my experience.
I am running five little shops in Lisbon ,as I started my first shop in 2016 by borrowing money from my friends family relatives.And I paid them back slowly .They trust me.with their help and Using my experience I opened more small business by the time in 2017 and 2018 and 2018.
I invested everything of my profits and saving here in Lisbon.I love this country and its people.
I contributed to this country my level best.And it’s all in the system I mean in seguranca social my landlords and finance etc.
Now where we are my all investment in middle of cyclone.There are millions like me.
We are not getting any help from this corrupt government.All the funds from EU is for Millionaires and Billionaires.
Many of us went to Bank
Applied for Loans
And waiting after rejected.
Landlords asking for rents or leave the shops.
Could not get layoffs because of debts.
Most of the Government of other countries helping businesses so much.
We are in such a situation we look like stateless.
Don’t have language to write it better.

By Abdus samad from Lisbon on 11-09-2020 04:02

Hopefully , goverment will find a formula to CURB landlords from squezing the last drop of blood from us , comercial tennants , i have my landlord calling constantly telling me corona 19 is over , march , april , may and june ...ZERO income , we are a big night club in Figueira ds foz , and will break if landlord dont stop threats and harassment , maybe goverment can aply a formula where tennant and landlord SHARE expenses , taxes and etc...that way we could all share the pain and go thru together so we can resume our activities and start working again to keep our landlords enjoying they good quality of life , as long as i can still can try to work everyday , and sometimes till 10am , 11 am after cleanning all the crap and vomit from our costumers....

By J.antonio m. Borg from Beiras on 08-06-2020 01:09

I want to start new business here in Lisbon. Is there any chance to getting financial support (Loan) from Government side?

By G.S from Lisbon on 06-06-2020 06:47
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