• Economics
  • Politics

Support for recovery

30 June 2020 - 16h00

On this last day of June, Jean Castellini and Didier Gamerdinger presented the adaptation of the measures to support the economy which is part of the support and recovery plan but also new measures intended to promote the return to work activity and employment.

“All the players recognize it, Monaco has been able to stay the course despite the slowdown,” said the government adviser-Minister of Finance and Economy. The objective now is, thanks to a fine analysis, to help the sectors that need it most and the smallest businesses all this by attracting customers to shops and restaurants.

The CTTR system, Chômage Total Temporaire Renforcé has worked well and continues to work well, said the government adviser-minister of Health and Social Affairs. In March, it involved some 22,000 employees, in May, with deconfinement, this figure was reduced to 14,700. The cost amounted to 13 million in March, 35 million in April (revised figure) and 22 million in May , today it is necessary to organize the gradual exit. Employers recognize, in fact, that this is normal, but that no sudden stop is necessary but support when it is necessary. From where three axes: to make pay a part by the employer, to exert controls to avoid the abuses and to prepare this exit. This is how for those who resumed their activity in May, May and June will be reimbursed in full in July with a reduction of 10%. According to the same principle, those who resumed their activity in June will touch June and July completely but will see the 10% applied in August. As for all those who have not been able to resume their activity such as nightlife establishments or shops in Monaco-Ville in great difficulty, for the time being the rate of 100% is maintained. In fact, to give visibility to companies, decisions are made before the 5th of the month except in August. The government will wait until August 15th to find out about activity, particularly in tourism, before deciding on September.

Finance the job

So much for unemployment, but, as Didier Gamerdinger points out, employment must now be financed with accompanying measures, particularly in activities linked to tourism, events, culture and sports. The State has therefore decided in some cases to pay half of the social charges (main pension and sickness) which represents 12% of the wage bill. This measure will benefit those who achieved less than a million turnover in 2019 and who experienced in June a reduction of 20% of this turnover compared to the same month last year. Potentially 458 shops and 164 hotel restaurants are affected. This measure will not benefit those who receive subsidies and therefore already receive de facto aid. Likewise there will be no aid for very high wages while in the event of dismissal within two years it will have to be reimbursed. However, an exemption from charges for two years will be granted for those who hire an employee with 20 years’ seniority in the Principality.

For his part, Jean Castellini confirmed the adjustment of the system of guaranteed bank loans. The envelope of 50 million which had been budgeted until the end of June has been used in full. From now on, the guarantee rate returns to its initial level of 65% while the interest rate is no longer zero with the state subsidy but 1.5% including 0.75% paid by the State. As for the RME, the Extraordinary Minimum Income and Aid to Companies which end in July, the amount is adjusted. For those whose resumption of activity has been authorized since May 4th or whose activity has not been forced to close to the public by administrative decision, the amount is halved or 2,500 euros. For beneficiaries whose activity was kept closed until June 2nd, it remains fixed at 5,000 euros.

Transition aid

Jean Castellini explains, for business support, that he is inspired by the German example with “transition aid” and an action on fixed costs. Its goal is to help those who need it the most. Regarding the criteria, it introduces a turnover level of 5 million euros. The April/June turnover and the July/September forecast will be examined. If the turnover is down by 50% the State will assume 50% of the fixed costs with a ceiling of 35,000 euros. All this will not be systematic but will be subject to examination by CARE, the Support and Economic Recovery Commission. The device is to be posted online today on the government website and requests will be received until July 31st.

Develop telework

Another subject is telework. As we know, the number of teleworkers has increased tenfold, exceeding 10,000 during the crisis. A questionnaire has been sent to better understand the issues and the government clearly wishes to encourage it in the future when possible. He wants to move forward on this issue with Italy, knowing that many mayors of the peninsula are in favour of it and that there are plans for telecentres. Such projects are also planned on the French side. The current system must be maintained until September, then it could be envisaged to develop the Franco-Monegasque convention in order to be able to increase the proportion of telework.

In the digital field, the Minister of Finance and Economy revisited the law recently passed on tokens or “tokens” and this new form of financing. He also stressed that it was necessary to develop e-commerce, authorize PayPal but also to obtain better referencing of Monaco on search engines.

Promote Monaco Safe

It is also necessary to publicize the Monegasque assets and the initiatives taken. The two councilors insist on the concept of Monaco Safe. A label will be assigned to the brands after questionnaire and verification of compliance with sanitary measures. The objective is to underline that the virus has circulated very little in the Principality and that health security is maximum there in order to encourage French and Italian neighbours, and more generally the South and North Europeans to come but also a whole clientele potential as traffic restrictions are lifted. Hence the Welcome Office campaign and the DTC action plan.


© Michael Alesi – Direction de la Communication

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