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Coalition wants wage support for companies again if corona rules are extended

Affected companies should be able to receive wage support again if the corona measures remain in force longer than the current three weeks. This must therefore be applied retroactively, including over the current period. The parties of the outgoing cabinet will propose this in the House of Representatives tomorrow. VVD, CDA, D66 and ChristenUnie also want tax deferrals for companies again.

Tomorrow is the debate on the support measures announced last week. Then the cabinet made 1.3 billion euros free for support to the economy. The vast majority of that money is intended for support for entrepreneurs to pay the fixed costs, the so-called TVL.

Entrepreneurial associations and also opposition parties thought this was too meager last week. In particular, the lack of support for paying wages, which was previously included in all support packages, was experienced as a great lack.

With the increasing hospital admissions, it is becoming increasingly real that an extension of those measures will continue to be necessary. “If the measures are extended, the floodgates must open again,” says a coalition MP.

Preparations

The government has not yet responded to this wish of the coalition parties. Last week, ministers wrote in the letter about the support package that they are keeping their finger on the pulse and that they are already making preparations for restarting the so-called NOW scheme if it is decided to do so.

How high the wage support will be remains to be discussed. Mustafa Amhaouch, Member of Parliament of the CDA: “If the measures last longer than three weeks, the wage support must be removed again”. He and the others still want to be careful about how exactly this should be done.

Dilemma

A dilemma is that at a certain point the support can also go on for too long. That is what advisers to the cabinet, such as the Central Planning Bureau, have also said. It costs society money and can also disrupt the already tight labor market, for example, because people remain employed by less well-performing companies.

At the same time, many see it as inevitable to give support if strict measures are taken at such short notice. Because entrepreneurs were not able to prepare for this, it is not seen as ordinary entrepreneurial risk.

Amhaouch will argue in favor of considering a long-term solution in addition to a short-term support plan, about which employees, employers and the cabinet should discuss matters.

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