Factsheet for case BG-2020-35/1085 – measures in Bulgaria
|Country||Bulgaria , applies nationwide|
|Time period||Temporary, 24 August 2020 – 30 November 2020|
Supporting businesses to get back to normal
– Measures to support a gradual relaunch of work
|Author||Tsetomila Sabcheva and Luboslav Kostov (Citub) and Eurofound|
|Case created||10 September 2020 (updated 28 January 2021)|
The programme offers operating capital for Bulgarian medium-sized enterprises to deal with the consequences of the COVID-19 pandemic. The total amount of the grant is €102,26 million.
It is a state aid programme in the form of direct grants under Section 3.1 of the 'Temporary Framework for State Aid Measures to Support the Economy in the Condition of the Current COVID-19 Outbreak' of 19 March 2020.
Eligible candidates :
The state's aid starts from € 15,000 and goes up to € 75,000. However, the requested grant may be a maximum of 3% of company's turnover for 2019.
Working capital, including:
In order for the remuneration expenses to be eligible, they should be up to the amount of the employment relationship as of 01 July 2020, but not more than € 1,000 .
Maximum duration of the projects: 3 months (The specified duration may be shortened by the beneficiaries in case of early implementation of the activities).
As of October 2020, 1,932 project proposals worth nearly BGN 264 million (€132 million) have been received.
After an additional evaluation by Ministry of Economy (Source from 18 December 2020), 1,703 project proposals with a total approved amount (grant) of BGN 233,645,650.49 (€119,461,124.17) were successfully evaluated under the procedure. Of these, 1,285 project proposals with a total grant amount of BGN 178,532,856.49 have been proposed for funding.
The reserve project proposals under the procedure are 418 with the amount of the approved aid of BGN 55,112,794.00 beneficiary, including the rules in the application conditions.
In case of residual financial resources under the procedure after the agreement with the proposed for funding, a grant may be provided for the applicants from the lists of reserve project proposals in the order of their ranking and until the available budget for the procedure is exhausted.
Employees in standard employment
||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Consultation through tripartite or bipartite social dialogue bodies||Consultation through tripartite or bipartite social dialogue bodies|
Social partners' role in the implementation, monitoring and assessment phase:
All representatives of the social partners were informed about the measure and it was consulted with them. Several working meetings and a final conference were held at which the measure was announced together with the representatives of business and trade unions. Business played a key role, as it is the direct beneficiary of the measure.
The Bulgarian Industrial Association (BIA) is monitoring closely the implementation of the programmes related to business. The association is sending reports and improvement suggestions based on companies feedbacks to the government.
All social partners unanimously supported the measure, as it enables both small and medium-sized businesses and workers. Some of the funds are intended to be spent on salaries, which the unions welcome. In Bulgaria, over 90% of businesses are classified as "small and medium" . In this sense, the measure itself is fundamental to the recovery of Bulgaria's economy from recession.
All social partners supporting the measure: Trade Unions:
However, some criticism is expressed towards the heavy requirements for the applying companies, slow and intransperent application processing.
Eurofound (2020), Support for medium-sized enterprises , case BG-2020-35/1085 (measures in Bulgaria), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.