The ten parties supporting the special powers of the federal government agreed on Saturday on a battery of new measures to support the economy in the context of the coronavirus crisis. The Horeca sees its VAT drop to 6%, a consumption check of 300 euros will be granted so that citizens support sectors in difficulty (Horeca, culture, etc.) and social assistance recipients will receive an additional 50 euros per month for six months.
A first set of expected measures has been confirmed, namely the extension until August 31 of temporary unemployment due to force majeure “corona”, bridge rights for the self-employed and specific parental leave, we learned from the from this “superkern”.
For sectors in difficulty, temporary unemployment and bridge rights will even be extended until December 31. In the seriously affected sectors which had to resort to temporary unemployment, a partial exemption from the payment of the withholding tax will be granted for the next three months in order to encourage the return of workers who are now temporarily unemployed.
Other measures have also been extended, such as the freeze on the degression of unemployment benefits, all the measures in favor of artists, the subsidy of 3 million euros to the CPAS in the framework of food aid or even the advantages linked to donations of computer equipment to schools.
Horeca: controls planned to avoid unfair competition
Two days before the reopening of the Horeca under strict sanitary conditions, this very fragile sector is the subject of unprecedented support, with a VAT reduction to 6% until the end of the year on all its services with the exception of alcoholic beverages. The goal is to “improve the financial situation of establishments“and not to lower prices. Controls will also make it possible to verify that fair competition is thus respected and that the effort is reflected in an increase in the profit margin.
To support consumption in sectors in difficulty such as Horeca or culture, a consumption check of 300 euros will be introduced. It will be granted by the employer, 100% deductible and tax exempt.
Help for people in difficulty
To support the most vulnerable, recipients of social integration income (RIS), people with disabilities and pensioners beneficiaries of GRAPA will receive additional social assistance of 50 euros per month for six months. It was also agreed to provide additional support to the CPAS through a further temporary increase in the reimbursement rate of 15% of the federal intervention.
Another measure: each resident in Belgium will be able to benefit from a Rail Pass of ten SNCB journeys valid from July 1 to December 31, 2020. The bicycle supplement will be temporarily eliminated.
The dynamics of the “superkern” are therefore not paralyzed. The ten parties (N-VA, PS, sp.a, MR, Open Vld, Ecolo, Groen, CD&V, cdH and Défi) have also agreed to continue their discussions in order to identify “additional support measures “.
What cost?
All these measures will weigh on the budget, but it is still too early to specify the cost. The cost of the measures will be specified later. Changes were indeed made this Saturday again compared to the proposals that were on the table. Budget Minister David Clarinval was therefore responsible for assessing this cost for the next “superkern”, we learned from his cabinet.
Some figures were however put forward by the Minister of Social Integration Denis Ducarme. The social supplement of six times 50 euros for beneficiaries of RIS will weigh more than 40 million, while the 15% increase in the reimbursement rate granted by the federal government to the CPAS for each new beneficiary of RIS is estimated at 21 million euros. Three million euros are planned for food aid from the CPAS and requests for hydro-alcoholic gel and masks, while the federation of food banks, the Red Cross, Alimen’T and ODC Antwerp will receive an additional amount of 759,000 euros.
Here is the complete press release we received from the office of Prime Minister Sophie Wilmès.
PRESS RELEASE
Following the meeting of the Restricted Council of Ministers extended to ten political parties supporting the federal government, a series of support measures belonging to the third component of the Federal Social and Economic Protection Plan has been validated.
The first “package” concerns measures which had already been taken by the federal government and which will be extended beyond their original date. The flagship measures are:
- Temporary unemployment for force majeure “Corona”;
- The bridge law in favor of the self-employed;
- Parental leave “Corona”.
These measures are extended until August 31.
Other measures have also been extended, such as the freeze on the degression of unemployment benefits, all the measures in favor of artists, the subsidy of 3 million euros to the CPAS in the framework of food aid or even the advantages linked to donations of computer equipment to schools.
Four specific support measures for sectors in difficulty, including HoReCa, have been defined in order to cushion the socio-economic consequences that may arise from a gradual resumption of activity. It is therefore :
- an extension and improvement of the gateway right until August 31, 2020 and extendable to December 31, 2020;
- in parallel, an extension of temporary unemployment until December 31, 2020;
- in order to allow Horeca establishments to improve their financial situation, a reduction in VAT to 6% until December 31, 2020 on all services except alcoholic beverages;
- in the severely affected sectors which had to resort to temporary unemployment, an agreement was reached to grant a partial exemption from the payment of the withholding tax for the next three months in order to encourage the return of workers who are now temporarily unemployed.
With regard to corporate solvency, the bank guarantee measure will be extended. The modalities for widening the scope of intervention for SMEs will soon be discussed in Parliament. Proposals to support artists will also be discussed there next week.
The purchasing power of the Belgians was also at the heart of the discussions. The will of the participants is to be able to create a positive dynamic, first and foremost, in favor of the citizens but also in favor of the economic activity of our country.
- A consumption check of 300 euros targeting the sectors mainly affected by the crisis may be granted by the employer for the purchase of goods and services in sectors such as Horeca, culture, etc. This check will be 100% deductible and tax exempt.
- Additional social assistance of 6×50 euros (monthly) for recipients of social integration income, people with disabilities and pensioners who benefit from Grapa. This exceptional assistance for more modest families will enable them to cope with difficulties.
- Each resident in Belgium will be able to benefit from a 10-journey rail pass (SNCB) valid from July 1 to December 31, 2020. The bicycle supplement will be temporarily eliminated.
In addition, additional support for the OCMW has been agreed through a further temporary increase in the reimbursement rate of 15% for the federal intervention.
Beyond this first package of measures which was the subject of an agreement, the ten parties agreed to continue their discussions in order to identify the additional support measures which could usefully supplement this first system.
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