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Factsheet for measure BE-2020-40/1442 – measures in Belgium

New Flemish protection mechanism for businesses

Nieuw Vlaams Beschermingsmechanisme (NWB)

Country Belgium , applies regionally

    • – BE2 VLAAMS GEWEST
Time period Temporary, 01 October 2020 – 15 November 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Access to finance
Author Dries Van Herreweghe (Katholieke Universiteit Leuven) and Eurofound
Measure added 20 November 2020 (updated 20 September 2022)

Background information

The resurgence of the virus in September-November has led to a re-introduction of strict measures that have a significant impact on the working of businesses. To reduce contacts and further spreading of the virus, the federal government has decided to restrict the activities of a large group of shops and HORECA that are considered to be non-essential. Because of this, many businesses that were struck by previous measures are now confronted with another period of little to no income. Because of this, new measures were implemented, like the New Flemish Protection mechanism. This provides financial support to businesses that have been faced with significant turnover losses in the period of October until mid November.

Content of measure

Concretely businesses that have been faced with a reduction of their turnover (because of federal measures) by 60% in the period between October and the 15 November are able to make use of additional financial support from the Flemish government. This support also applies to businesses that were forced to shut down because of these measures.

The calculation of the loss in turnover is calculated in comparison with the same period last year. This is firstly done based on a declaration on honour, the applicant is obliged to keep the documentary evidence for five years.

The mechanism will from now on repeat on a periodic basis, every time businesses that are struck can apply for financial support for the previous period. The financial support amounts to 10% of turnover with a minimum of €1000 and a maximum of €60,000 (mainly based on the number of employees).

Use of measure

The measure is very new and it is therefore currently not possible to estimate the amount of applicants.

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
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

It is unclear to which extent the social partners were involved in this measure.

Views and reactions

Employers' associations (e.g.: Unizo) have been positive and supportive of the measure. They believe it is absolutely necessary to support Flemish businesses.

Sources

Citation

Eurofound (2020), New Flemish protection mechanism for businesses, measure BE-2020-40/1442 (measures in Belgium), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/BE-2020-40_1442.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.