The European Commission has approved an $840-million Bulgarian wage subsidy support scheme for preserving employment in those sectors of the economy that have been most affected by the lockdown measures introduced in light of the COVID-19 pandemic, the European Commission said on Wednesday
MOSCOW (Pakistan Point News / Sputnik - 15th April, 2020) The European Commission has approved an $840-million Bulgarian wage subsidy support scheme for preserving employment in those sectors of the economy that have been most affected by the lockdown measures introduced in light of the COVID-19 pandemic, the European Commission said on Wednesday.
"In these difficult times, preserving employment in sectors that are particularly exposed to the economic impact of the coronavirus outbreak is of utmost importance. It matters to the livelihoods of many workers and it will allow the European economy to bounce back strongly after the crisis. The Bulgarian scheme we approved will help thousands of workers to keep their jobs and undertakings to resume their activities as soon as the circumstances allow it. We work with the Member States to ensure that this is done in line with the EU rules," the European Commission's executive vice-president, Margrethe Vestager, said, as quoted in a press release.
In March, Bulgaria notified Brussels that its wage subsidy aid scheme would allow the Bulgarian authorities to finance 60 percent of wage costs for businesses that would otherwise have been forced to dismiss personnel.
"The measure is restricted to undertakings active in the sectors most affected by the current public health crisis, such as retail, tourism, passenger transport, culture, sports activities, amusement and recreation activities and others," the commission said.
In accordance with the so-called Temporary Framework adopted by the European Commission, EU member states can use the full flexibility foreseen under the country's aid rules to support the economy in light of the COVID-19 pandemic. The document amended on April 3 provides for the following types of aid governments that can be granted to the working population and businesses - direct grants, equity injections, selective tax advantages and advance payments, and state guarantees for loans taken by companies and others.
The coronavirus-related state of emergency in Bulgaria was introduced in March and will be in effect until May 13. Bulgaria has so far confirmed 735 cases of COVID-19 and 36 related fatalities.
