Factsheet for measure
EE-2020-1/384
–
Updated
– measures in Estonia
Measures to support shipping companies
Laevandusettevõtete toetusmeetmed
Background information
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.
Content of measure
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.
Updates
The following updates to this measure have been made after it came into effect.
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24 November 2021
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€9.4 million will be allocated in 2022 for this measure. As of April 2021 the waterway charges have been reduced to 50% of the regular charges and this will be continued in 2022.
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30 December 2020
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On 9 October, the government approved a decree to establish the support mechanism for passenger ship operators, which allows 80% compensation of the loss of income (e.g. income from passenger or cargo transport, sales of goods or services, or renting rooms) during the period of 13 March - 15 June (Estonian-Finnissh shipping line) and 13 March - 30 September (Estonian-Swedish).
Four operators received the support in the total amount of €20 million. The operators applied for €39 million.
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06 October 2020
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In the end of August 2020, Estonia received the European Commission's approval to offer state aid to shipping companies. After the decision the conditions of the labour taxes subsidy were confirmed.
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Use of measure
All shipping companies will be eligible for the first measure. Two companies are eligible for the labour tax measure.
Target groups
Actors and funding
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Actors
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Funding
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National government
EU (Council, EC, EP)
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement as case not in social partner domain
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No involvement as case not in social partner domain
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: Unknown
Involvement
n.a.
Views and reactions
n.a.
Sectors and occupations
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This case is sector-specific
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Economic area
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Sector (NACE level 2)
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H - Transportation And Storage
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H50 Water transport
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This case is not occupation-specific.
Sources
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02 April 2020: Laevafirmad võivad saada väga suure riigipoolse toe.
(arileht.delfi.ee)
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03 April 2020: Laevandusettevõtted saavad riigilt mitmekülgset tuge
(www.mkm.ee)
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17 September 2020: Government approved the conditions of the support to shipping companies (Valitsus kinnitas reisilaevanduse toetamise tingimused)
(www.mkm.ee)
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17 December 2020: Additional support to shipping companies (Riik toetab 20 miljoniga koroonakriisist mõjutatud rahvusvaheliste reisilaevade operaatoreid)
(www.rtk.ee)
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24 November 2021: Riik toetab merendussektorit järgmisel aastal plaanitust rohkem (Maritime sector will receive additional support)
(mkm.ee)
