Background information

The Greek Government on 5 February 2021, by Law 4772/2021, Article 29, introduced the subsidy of the fixed costs of the companies affected by COVID-19, as a temporary measure which is a part of the wider support for non-covered fixed costs of enterprises. As fixed costs are regarded employee’s benefits, self-employed insurance contributions, energy, water, telecommunications, rents, other operating costs and debt interest and related costs. The European Competition Commission (DGCom) is expected to finalise the conditions and aid limits for eligible companies. The programme is intended to cover the unpaid fixed costs incurred between 1 March 2020 and 30 June 2021 and to be completed on 30 June 2021. This aid is irrepressble, tax-free and is not offset against any debt.

Content of measure

The process of formulating the conditions of the subsidy for the fixed expenditure costs is in the final stage. The beneficiaries are mainly companies which: belong to the sectors directly affected by the pandemic, show a decrease in their turnover of at least 30% in 2020 as compared to the previous year according to the European rules, record a significant loss in the previous year and employ workers. The companies that will receive the subsidy are required to maintain on average the number of the staff they employed in 31 December 2021 and the final amounts will be decided after applications have been submitted. The proposed fixed cost coverage, is a part of the post-coronavirus transition measures and is expected to be implemented when the existing support measures will stop for the re-opening sectors. The programme will come to cover the loss of the company that arises if the operating costs are deducted from the amounts received from other support measures.

Use of measure

Approximately 30,000 – 50,000 companies are estimated to share the total amount of €500 million. This is the first time that the Commission has taken a decision on this matter.

Target groups

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

Actors and funding

Actors	Funding
National government Company / Companies	European Funds 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

There is no any involvement of social partners.

Views and reactions

In a letter to the Minister of Finance, ESEE (Hellenic Confederation of Commerce and Entrepreneurship) reacted against the condition of the existence of employees for the taking the grant and pointed out that these conditions exclude some 130,000 individual and family businesses. It therefore requested an amendment to the relevant provision as well as capital support for enterprises. In addition, SETE (Greek Tourism Confederation) with a letter dated in 12 February 2021, regards as positive the measure for the affected companies and put forward a specific proposal as to the amount and the eligibility of the measure. In a publication on 11 March 2021 on the government's new measures, GSEVEE (Hellenic Confederation of Professionals, Craftsmen & Merchants) considers the measure to subsidize fixed costs positive but not sufficient for the survival of enterprises with immediate and pressing liquidity needs.

Sources

• 05 February 2021: Law 4772/5th February 2021 (Νόμος 4772/5 Φεβρουαρίου 2021 (www.taxheaven.gr)
• 11 March 2021: GSEVEE on the new measures announced by the Government (ΗΓΣΕΒΕΕ για τα νέα μέτρα που ανακοίνωσε η Κυβέρνηση) (www.gsevee.gr)
• 09 April 2021: Final straight for the fixed asset subsidy arrangement-What does it include? (Τελική ευθεία για τη ρύθμιση για την επιδότηση παγίων-Τι περιλαμβάνει; ) 09 Απρ 2021 (www.reporter.gr)
• 15 April 2021: Retail needs 'fuel' not to stay halfway (Το λιανεμπόριο χρειάζεται «καύσιμα» για να μην μείνει στα μισά του δρόμου (esee.gr)