In an RTL interview, Minister for Small and Medium-sized Enterprises Lex Delles (DP), acknowledges Horesca’s call to be fully reimbursed for the losses the sector has incurred. Yet, he stresses EU rules are tying his hands.
CSV MP Marc Spautz believes the ministry is not exhausting all possibilities at its disposal. In order to benefit from state aid for excess costs, firms need to have lost 40% of their revenue, according to the government’s plan. However, EU rules foresee aid for losses starting at 30% of overall revenue.
Moreover, Spautz is pleading for advances, or bridging loans, as firms are experiencing significant cash flow problems, but desperately need cash now. The CSV MP demands, similarly to Horesca representatives, a full reimbursement for restaurants and cafes on which “restrictions were unilaterally imposed”.
Besides state aid for excess costs, payments of €1,250 per employee have been extended until the end of march, provided the company in question has lost more than 25% of its revenue. The extraordinary part-time employment regime will run until mid-June.
The president of the parliamentary commission for medium and small sized enterprises, MP Simone Beissel (DP), has tried to reassure business owners. Even though aid measures cannot be accumulated, it is possible to apply for more than one state aid from one single “package”. According to Ms Beissel, under the current flexible system, it is possible to receive more than 25% in state aid.
Parliament is expected to vote on the help package that the government unveiled in mid-November. Despite significant reservations, the CSV will back the measures. “A bird in the hand is worth two in the bush”, Marc Spautz is quoted.
Besides financial support affected business will be supported through extensive tax breaks. Business and self-employed can benefit from tax breaks and from cancelled tax advances. Unlike during the state of crisis, such cancellations will not be given automatically, but DP minister of finance, Pierre Gramegna, gave assurances in parliament that civil servants in the tax administration will show “good faith”.
During the same parliamentary session, CSV MP Laurent Mosar pointed out that, on one side there would be very “reasonable” applicants, but others would apply “maximum pressure” to receive state aid. Mr Gramegna replied that he could and would not presume to know anyone’s intentions. The minister of finance said he was convinced that the leadership of the tax administration and individual officers would take their cue from what he has said in parliament.
