After the Prime Minister's speech, the Minister Labour and Social Affairs , Yannis Vroutsis, detailed the government's plan to be implemented in the coming months with support measures for businesses.

Support measures to stimulate work

The support package includes support measures from 1 June to October, which were specified by the Ministers of Finance and Labour, Mr. Staikouras and Mr. Vroutsis, as follows:

• It extends, for an even longer period of time, the right to suspend the employment contract of employees, the special purpose compensation and the coverage of their insurance contributions. The possibility of suspending an employment contract, up to 100%, of employees in the tourism, catering, transport, culture and sports sectors continues.
• A new support mechanism for short-term employment is created to preserve jobs and support entrepreneurship.
• Unemployment benefit is provided to seasonally employed persons who will not be hired during the current tourist season. And at the same time, a subsidy for insurance contributions is provided for seasonal part-time workers.
• It is possible to suspend the payment of installments of certified debts to the tax authority to those businesses that remain closed, as well as in the sectors of tourism, catering, transport, culture and sports, and for the month of June. Employees whose contracts are temporarily suspended have the right to suspend the instalments of established debts.
• The possibility of reducing rent by 40%, in June, is extended to those businesses that remain closed and to businesses belonging to the sectors of tourism, catering, transport, culture and sports. In addition, the same possibility is given to those businesses that opened in May, including retail. In addition, businesses belonging to the sectors of tourism, transport, culture and sports, are given the opportunity to reduce rent during the months of July and August. Finally, all employees whose employment contracts are temporarily suspended also have the right to reduce the rent for their 1st residence and the student residence of their dependents.

• For owners who lease property to affected businesses and employees, the deadlines for the payment of established debts are suspended. For owners who lease property to affected businesses and employees, the deadlines for the payment of established debts are suspended.
• A 2nd submission period is granted for a Repayable Advance, based on the turnover loss of the months of March, April and May. The unspent balance of the first phase, which has just been completed, will be added to phase 2, bringing the total amount allocated by the end of June to EUR 2 billion. euro.
• A reduction in the advance payment of tax is foreseen. For businesses that will experience a decrease in turnover in the months of March, April and May, cumulatively exceeding one percent, a reduction of one percent of the advance tax they are required to pay in 2020 for 2021 will be foreseen. The percentage will be determined in July, based on the turnover data submitted by businesses for the previous period.

• VAT on transport is reduced from 24% to 13%, for the period 1 June – 31 October 2020. It covers passenger transport by train, by metro and tram, by city and intercity buses, by plane, by boat, by combined transport. Citizens, especially the weakest income strata, will benefit greatly from this provision of the state.
• VAT on coffee and non-alcoholic beverages is reduced from 24% to 13% for the period 1 June – 31 October 2020.
• Vat on the tourist package is reduced from 80/20 (80% to 13% and 20% to 24%) to 90/10 for the period 1 June – 31 October 2020.
• VAT on cinema tickets is reduced from 24% to 13% for the period 1 June – 31 October 2020.
• Expenditure on scientific and technological research is deducted from the gross receipts of enterprises plus 100%, as against 30% at present, for expenditure incurred from 1 September.
• Created National Register of Start-ups , in line with international standards, in order to provide a coherent framework for the development of targeted policies to support the ecosystem. Incentives are given to individuals who contribute [angel investors] investment funds for start-ups, in the form of tax deductions on the amount invested.

New loan subsidy programme for businesses

A program is being launched in which the State will subsidize, for a certain period of time, a significant part of the monthly installments of those affected by the consequences of the coronavirus, who have loans with a mortgage on the first home. It covers all "bad loans", both those created before the end of 2018, as well as those that subsequently – until today – arose, for citizens affected by the consequences of the health crisis. But it also covers, and this is very important, the performing loans of our compatriots affected by the pandemic. At the same time, it sets safeguards so that strategic defaulters do not benefit from the subsidy.

With the new program, in addition to the extension of the existing framework:

• For the first time, consistent borrowers are being supported, with performing loans, who have been hit by the pandemic.
• It supports all borrowers affected by the health crisis, who have a "red" loan, even after the end of 2018.
• The payment culture is cultivated.
• The risk of creating a new generation of "bad" loans is reduced.
• Social cohesion is strengthened.
• Multiple borrowers are covered compared to the existing framework.

As stressed by the Minister of Finance Christos Staikouras, the total cost of the measures that are in place or will be implemented it expands to around EUR 14.5 billion. euros, and their added value at 20 billion. euros. In this context of interventions, new policies will be added in the near future, which are also linked to the use of European funds, such as:

• boosting employment through the European SURE Programme,
• the use of guarantee instruments of the European Investment Bank;
• the utilization of resources from the Recovery Fund, which will be created in the future.

The total cost of the measures is estimated to be at 24 billion euro.

Vroutsis announcements - Codified employment measures - Up to 60% subsidy for loss of wages - Up to 100% contract suspensions for the affected sectors

Extension of contract suspensions, subsidisation of loss of income of workers and full coverage for minimum wage earners is provided for in the labour support plan to be implemented in the summer of 2020 in the affected sectors.

In detail, as announced by the Minister of Labor, Yannis Vroutsis:

1. Suspensions of employment contracts

Contract suspensions are extended for 100% of employees, for those businesses that remain closed, but also for businesses in the tourism, catering, transport, culture and sports sectors that are affected in June and July. Workers will receive proportional special compensation of up to 534 euros.

Analytically:

May for business

For the month of May, the right to suspend the employment contracts of employees has already been extended.

Businesses that reopen have the ability to keep up to 60% of their employees suspended.

At the same time, businesses that remain closed, as well as all businesses in the tourism, catering, transport, tourism, catering, transport and education , culture and sports can keep up to 100% of their employees on probation.

Employees whose contracts remain suspended will receive a special purpose allowance of 534 euros, in proportion to the days of the suspension, and the state will cover their insurance contributions, calculated on their nominal salary.

Also, in May, the possibility of suspending the payment of insurance contributions for the employees of all affected businesses is extended.

June for business

For the month of June, the possibility of suspending employment contracts is extended to 100% of employees, exclusively for those businesses that remain closed, but also for businesses in the sectors of tourism, catering, transport, culture and sports that are affected.

Suspended employees are entitled to a special purpose compensation of 534 euros, in proportion to the days of the suspension and full coverage of their insurance contributions on their nominal salary.

However, in June, the possibility of suspending the payment of insurance contributions ceases to apply to all businesses.

July for business

For the month of July, the possibility of suspending employment contracts will be extended to 100% of employees, but only for businesses in the tourism, transport, culture and sports sectors affected.

Suspended employees are entitled to a special purpose compensation of 534 euros, in proportion to the days of the suspension and full coverage of insurance contributions on their nominal salary.

2. "COOPERATION" Support Mechanism

The mechanism will subsidize by 60% the loss of income that the employee will have when his working time is reduced by 50% (safe operation personnel)

If the remuneration after the reductions is below the minimum wage of 650 euros, the difference will be covered by the state in full.

The Employment Support Mechanism enters into force for the period from 1 June to 30 September 2020 with an extension of its validity if and when needed. All companies in the country that show a decrease in their turnover, at least 20%, during the previous period, regardless of CAR, will have the right to participate in this mechanism. The mechanism will also include businesses that are operating for the first time and have not recorded revenues in the previous months.

The mechanism will also apply to seasonal businesses. All full-time employees hired will be eligible to participate, up to the number of full-time employees they had last year in the respective month.

Attention

the mechanism will cover all existing full-time employees. It will not be allowed to convert the employment relationship from part-time to full-time in order for the company to receive the benefit of participation in the mechanism.

The employer's right to reduce the working time of the full-time employee by up to 50% will be exercised under the strict condition that the type of employment relationship is not altered.

The state undertakes the obligation to replenish 60% of the employee's income for the time that the employee will not work.

Moreover, in the event that the net remuneration after the above adjustment is below the minimum wage, the difference will be covered by the State in full.

At the same time, the employer has the obligation to cover all the employee's insurance contributions, calculated on the initial nominal salary.

For as long as the employee is in a reduced employment status, the employer is prohibited from terminating the employment contract and reducing the employee's nominal salary.

3. Support for seasonally employed and unemployed persons

The seasonal unemployment benefit will be granted as a monthly financial support until September 2020 to the approximately 120,000 seasonally unemployed. At the same time, the state undertakes to cover the employer's insurance contributions of seasonal part-time workers.

This measure will act as an incentive to re-employ seasonal workers.

Then Mr. Vroutsis referred to the measures taken by the government with the seven Acts of Legislative Content and the dozens of Ministerial Decisions and Circulars aimed at preserving existing jobs.

ERGANI's data for March and April confirm us:

In March, ERGANI's balance showed that any redundancies that took place, these occurred until March 18, as on that day the first measures were applied and specifically the special clause for the preservation of existing jobs. After 18 March, the redundancies were eliminated.

The same data was shown by ERGANI in the month of April. Despite the unfavorable fiscal situation and the lock down of the labor market, the month of April ended with a positive balance (+ 7,205 hires) while for the month of May the data of ERGANI are encouraging since the balance is positive until today