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Government Support Package For Businesses March 20, 2020

25.03.2020

1. The earnings-related pension contribution will be reduced by 2.6 percentage points. This will be implemented as soon as possible and will be valid until the end of 2020. It will ease the payments bill of businesses by €910 million. Occupational pension companies may extend the period for payment of earnings-related pension contributions and self-employed pension contributions to three months. Pension companies must discontinue payment of customer bonuses for a period when employers’ pension contributions are reduced.

2. The credit guarantee mandate of the state-owned special financing company Finnvera will be increased by €10 billion to a total of €12 billion. The increase in the mandate will provide for additional financing of businesses to the amount of €10 billion. Finnvera’s guarantees for corporate loans granted by banks will increase to a maximum of 80% of the loan amount. Finnvera will recruit temporary personnel to relieve the congestion in applications.

3. Business Finland is providing an additional €150 million in grants to be used for urgent support measures for businesses. An increase of €50 million is proposed to support business development projects.

4. The unemployment insurance deductible dates will be abolished in the event of lay-offs and redundancies. Unemployment insurance will be immediately accessible. The employment duration condition will be shortened and the unemployment benefit deductible period will be abolished. These measures will cost the state more than €100 million.

5. Decisions on lay-offs will be expedited. The notice period is reduced from 14 to five days. The employer’s entitlement to lay-off is also extended to fixed-term workers.

6. Unemployment insurance for entrepreneurs and freelancers will be provided. In order to be eligible for unemployment insurance, it will not be necessary to close the business.

7. The government guarantees to support Finnair to the tune of €600 million.

8. An increase of €26 million is proposed for the control of communicable diseases. An additional appropriation of €12.8 million is proposed for the operating costs of the Institute for Health and Welfare for coronavirus-related expenditure.

9. An increase of €5.6 million funding is proposed for the police services to cover the additional costs arising from the coronavirus epidemic.

10. An amount of €200 million is proposed for non-specific expenditure relating to emergency circumstances.

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Markku Larsen

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markku.larsen(at)larsen-co.fi
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