The Chamber of Deputies debated the government's programme of financial aid for businesses on Thursday, but not all parties were satisfied with the proposed measures.
A total of three new laws aiming to support businesses during the crisis were voted on: a compensation for businesses for the minimum wage increase, a direct aid and an extension of the stimulus funding all passed in Parliament. Although deputies from across the political spectrum agreed that businesses need help to recover from the impact of coronavirus restrictions, a number of criticisms were raised.
The direct aids and the stimulus primarily target the Horesca, tourism and events sectors. Both of these are non-refundable and tax exempt and have to be requested every month, but businesses have to choose either one or the other. Direct aid does have an upper limit, as MP Guy Arendt from the DP explained:
"This is €20,000 a month for micro-enterprises, €100,000 for small enterprises and medium or large enterprises have a limit of €200,000 a month."
This means that medium or large enterprises can request up to a total of a million euros for the months of November to March. The CSV requested that this should be increased to three million, with Marc Spautz criticizing that the aid is insufficient.
"I would like to argue for restaurants to receive 100% if the government decides that they have to close. It was Mr Bettel, after all, who said on this very stage six months ago: no matter the cost! If you say that, you have to follow through, and this isn't happening here."
Déi Lénk are not opposed to aid in principle, but would like to see something about maintaining jobs in the text. The current support programme leaves a bitter aftertaste for employees, according to deputy Marc Baum:
"Would it have been too much to ask businesses to commit to not laying off employees during the very period they are receiving non-refundable government aids? No, it would not!"
Baum further stressed that it is difficult to keep track of the various financial measures. Smaller enterprises especially would benefit from a more proactive information policy by the government, who should help them understand their various options.
Only businesses put in difficulty by the coronavirus crisis are able to claim financial aid. According to ADR MP Fernand Kartheiser, the government should ensure that as few businesses as possible will be forced to close.
"This [crisis] has a major impact on economic life. And it seems obvious to us that for the duration of the restrictions, there should be compensation. This only seems natural."
The ADR thinks the law is not generous enough. The party did vote for them, however, as every measure to help businesses should be supported, according to Fernand Kartheiser.
Minimum wage increase: compensation for businesses
A further text concerns a compensation for the minimum wage increase for businesses. This is slated to increase by 2.8% on 1 January.
"Businesses will receive €500 per full time employee hired before 31 December 2020 who receives a salary higher or equal to the minimum wage and smaller or equal to the qualified minimum wage. This concerns every "active" employee. This does not exclude those on sick leave; only those on partial unemployment are not included," explained DP deputy Carole Hartmann.
