Background information

Some sectors are experiencing very heavy decreases in turnover during the crisis. The Flemish Government is therefore providing support to save intrinsically sound businesses from bankruptcy and help the affected sectors to stay afloat. Companies with a turnover decrease of at least 60% in 2020 and accounting losses can appeal to the globalisation mechanism. This is an aid amount of 10% of the turnover during the reference period, excluding VAT.

Content of measure

Not every company or organisation can apply, several conditions are necessary:

• In the last three quarters of 2020 (1 April to 31 December 2020), have suffered a reduction in turnover of at least 60% compared to the turnover for the reference period, and make a loss.
• Have made a turnover in the reference period of at least €450,000. Exceptional and non recurring income or revenues are not taken into account.
• Be a company (legal person) that is required to file annual accounts on a regular basis.
• Be active at the time of application.

The support consists of:

• 10% Of turnover, from services provided in the reference period. The support is limited to 70% (for a medium-sized and large enterprise) and 90% (for a small enterprise) of the fixed costs in the grant period. The maximum subsidy amount depends on the number of employees and the reduction in turnover.
• COVID-19 support measures that were already received are deducted from the aid amount.
• Aid is granted at company level.

Use of measure

Up until the last update (3 June 2021), 3 companies were granted the support.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
Local / regional government	European Funds Regional funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

Unclear, not mentioned online.

Views and reactions

EO UNIZO has released a public statement to express the fact that they are pleased with the measure to support their members. UNIZO also believes it is good that the aid is made dependent on a number of individual parameters, such as the employment and the loss of turnover in the company. However, this can make the application more difficult, they therefore advise companies to discuss it with an accountant or other professional.

Sources

• 29 January 2021: Unizo press release on Globalisation Mechanism (www.unizo.be)
• 26 February 2021: Vlaio: Globalisation mechanisme (www.vlaio.be)