Factsheet for case SI-2020-40/1485 – Updated – measures in Slovenia
|Country||Slovenia , applies nationwide|
|Time period||Temporary, 01 October 2020 – 31 March 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Maja Breznik (University of Ljubljana) and Eurofound|
|Case created||27 November 2020 (updated 22 January 2021)|
On 25 November 2020, the Parliament passed the sixth COVID-19 law ( Act Determining Intervention Measures to Remedy the Consequences of the Second Wave of COVID-19 Epidemic , ZIUOPDVE). The partial reimbursement of fixed costs is a new measure. Besides the already existing Temporary layoff scheme and reimbursement of wage related compensation to employers , the Partial reimbursement of fixed costs is the most important state intervention in the sixth COVID-19 law. The minister of finance expects that both measures will cost about €900 million.
The measure aims at supporting businesses to overcome temporary stagnation by subsidising their fixed costs. These costs may include compensations for land use, insurance fees, utility costs and energy bills. Private companies (including self-employed persons and cooperatives) must meet the following requirements:
Thresholds for the partial reimbursement of fixed costs are:
The government will pay off reimbursements on 20 January 2021.
The Minister of Finance gave exemplar calculations of a subsidy one company may receive. A company with 60 employees, €3 million income and 70% less income gets €108,000. If the same company has between 30 and 70% less income, it receives €54,000. A small company with 3 employees, €12,000 income a month and 70% less income gets €5,400. If it has between 30 and 70% less income, it receives €2,700.
The measure is valid for the last quarter of the year 2020. It may be prolonged for another six months.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||Negotiated||Agreed (outcome) incl. social partner initiative|
|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:
Social partners contributed their proposals and amendments to the law. Employer organisations (The Chamber of Commerce and Industry of Slovenia, GZS and The Chamber of Craft and Small Business of Slovenia, OZS) demanded lower thresholds and a higher ratio of subsidies to the lost income than determined in the sixth COVID-19 law. Trade unions proposed employee participation in profits for all companies which have received any state support during the epidemic. The proposal was not accepted.
Opposition parties protested against the provisions which, in their view, do not fall within the emergency law. One of the contested articles is a prolonged accreditation of higher education institutions. It is allegedly a service to a private university ( Nova univerza ), closed to the ruling Slovenian Democratic Party. The second is a very high fine between €1,200 and €12,000 for organizing a protest during the epidemic. Oppositional MPs claim that the fine tries to stop massive protests against government occurring every Friday since April 2020 (but temporarily interrupted due to epidemic). But there are many more: more than 100% higher subsidies to religious institutions (Articles 107–108); the right of communities to change the use of agricultural land up to ten acres etc.
Eurofound (2020), Partial reimbursement of fixed cost, case SI-2020-40/1485 (measures in Slovenia), 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.