Background information

The Council of Ministers has approved Royal Decree-Law 5/2021 on extraordinary measures to support business solvency, which mobilises €11 billion in direct aid to companies, through subsidies, cost reduction and reinforcement of their capital.

This aid will be aimed at viable companies in the sectors most affected by the pandemic, in order to channel resources to the economy as a whole and reduce the risk of over-indebtedness that could hamper the economic recovery.

The objective is to continue protecting the economy, maintain employment, prevent a negative impact on public finances and the financial system and, ultimately, avoid a structural impact on the economy. For this, the law establishes various instruments so that companies and self-employed can face the payment of invoices with suppliers, fixed costs and other debts, financial and non-financial, thus improving their balance sheets and guaranteeing the maintenance of their businesses.

Content of measure

The new measures, together with those already agreed for this year, represent a fiscal effort of direct aid to protect the economy, employment and health that exceeds 2% of GDP. These include the resources transferred by the State to the autonomous communities and that are already allowing the mobilization of €2 billion to help the self-employed and companies in their territories.

Direct financial support to companies and the self-employed amount to €7 billion, allowing autonomous communities to grant direct aid to the self-employed and companies in the sectors most affected by the pandemic whose income has fallen by more than 30% compared to 2019.

All companies and self-employed in the hospitality and tourism sector, plus sectors with access to the expanded Temporary lay-offs established in Royal Decree-Law 2/2021, and others especially affected by the pandemic, such as the activities of the manufacturing industry related to commerce and hospitality; wholesale and retail trade; auxiliary transport sectors; aeronautical maintenance, and activities related to culture and sports activities. In total, there are about a hundred activities to which the resources will be able to reach.

Use of measure

No information available.

Target groups

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

Actors and funding

Actors	Funding
National government Local / regional government	National funds

Social partners

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

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

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

• No involvement
• Main level of involvement: N/A

Involvement

Social partners were not involved in the design of the policy measure nor will in in its implementation.

Views and reactions

Employer organisations and trade unions welcome the policy measure, but asked to devote more money to direct aid to companies. At the moment, €7000 million euro out of €11000 will be directly to companies, with the remaining €4000 million euro providing easy access to credit and refinancing.

Sources

• 12 March 2021: Royal Decree Law 5/2021 (www.boe.es)
• 12 March 2021: Dudas sobre las ayudas del gobierno a las empresas (www.rtve.es)