Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure EE-2020-1/384 – Updated – measures in Estonia
|Country||Estonia , applies nationwide|
|Time period||Temporary, 01 January 2020 – 31 December 2023|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound|
|Measure added||08 April 2020 (updated 20 January 2022)|
Estonian shipping companies are in difficult situation due to the restrictions on borders (decreased tourism, decreased cargo volumes etc). At the same time, trade must be encouraged to avoid further damage to the economy. It is important to avoid the closures of the shipping companies as these have an important role in contributing to the economic growth in Estonia. In order to use the supportive measures, the supplementary state budget was approved by the Parliament on 15 April 2020 and application for state aid was approved by the European Commission.
Three measures are foreseen to support the shipping companies:
Firstly, between 1 April 2020 and 1 April 2021, shipping companies are not charged with waterway charges.
Secondly, from 1 January 2020 retroactively til the end of 2020, all port charges for passenger transport ships in the amount of 75% will be reimbursed by the state. A total of €20 million would be used for it.
Thirdly, passenger international shipping companies will be paid a quarterly subsidy equal to the difference between the labor taxes calculated on the salary paid to the crew member and the labor taxes calculated from the tax base (1.5 or 2.5 times the minimum monthly wage). Two companies currently qualify under the measure. The measure would be used until the end of 2023. It is expected that €3.7 million in 2020 and €7.7 million in 2021 will be used for the measure.
All shipping companies will be eligible for the first measure. Two companies are eligible for the labour tax measure.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
EU (Council, EC, EP)
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement as case not in social partner domain||No involvement as case not in social partner domain|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
|Economic area||Sector (NACE level 2)|
|H - Transportation And Storage||H50 Water transport|
This case is not occupation-specific.
Eurofound (2020), Measures to support shipping companies, measure EE-2020-1/384 (measures in Estonia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/EE-2020-1_384.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.