Calvinio Said The Community Will Allocate $2 Billion Directly To Help Small And Medium-Sized Enterprises And Self-Employed People

2021-02-25   |   by CusiGO

Nadia Calvi รณ o, vice president of the economy, said on Thursday that the autonomous region had informed the Ministry of finance that it would provide about 2 billion euros in direct aid to small and medium-sized enterprises and self-employed people. This amount is equivalent to 25% of the 8 billion euros that the Administration agreed to transfer this year from the European react-eu fund, which aims to strengthen the welfare state and restore the economy after the outbreak. “The government has been ensuring that the autonomous region has sufficient funds to meet its health and social needs, while also providing direct assistance to businesses in its territory,” he said.

As a result, calvinio ended the debate about the need for direct state assistance to save businesses in sectors such as tourism, hotels and restaurants, which were hit hardest. The third vice president attended the European Union Senate parliament Joint Committee at her request, referring to the 11 billion euro plan announced by executive president Pedro Sanchez on Wednesday to improve the solvency of the self-employed and small and medium-sized enterprises in the hotel and tourism industries, The people’s party responded by asking for an additional deployment of 50 billion US dollars. Calvino said they are still considering what measures to take and said they hope to submit the package in March. At the same time, economics works with the Bank of Spain and the financial sector to identify the crux of the debt problem to support viable companies.

Therefore, at present, the vice president of economy has authorized the administrative personnel of the autonomous region to provide direct assistance to prevent the bankruptcy of small businesses. The Ministry of Finance reported on December 28 last year that the community will receive 10 billion euros from the react-eu plan, including 80 million euros in 2021 and 2 billion euros in 2022. The money is mainly used to fund activities in the fields of education, health and social services, but the government is flexible about its fate and opens the door to other issues “considered to be related to economic recovery” in the autonomous region.

The allocation of these funds follows the same criteria as the EU’s allocation of funds among the 27 countries: population, GDP and average unemployment. By leaving the decision to provide direct assistance to the autonomous region, the self-employed and small businesses in some communities may benefit more from the funds than those in other communities. Calvino highlighted the social dialogue with employers and trade unions on the use of European funds and the large-scale response of communities, city councils and the private sector to the appeal to identify initiatives.

For the vice president, Spain is expected to receive 140 billion euros from the common debt by 2026, which will be “a qualitative leap comparable to the structural funds of the 1980s and 1990s”. He pointed out that if the planned measures focusing on ecological transformation are implemented, Spain’s economic growth this year will reach 500 billion euros, accounting for more than 2% of GDP (37% of the total). Digital (33%) territorial cohesion and gender equality.

Without the approval of the European Fund for rehabilitation by all Member States in their respective national assemblies, economic operators insist that since January 1, projects have been deployed in accordance with the general national budget and the decree to speed up the approval process, This is a sample of an emergency, because they put money in as soon as possible.

Calvinio argues that the government has mobilized 20% of GDP to deal with the epidemic, among other measures, through guarantees, ERT and self-employed welfare. Without them, he estimated that Spain’s economy would drop by 25% and more than 3 million jobs would be destroyed.