With a view to getting through the summer, the Prince’s Government has come up with an economic support and recovery plan to address the COVID-19 crisis. The plan has four strands: financial support, digital development for the economy of the future, communication to promote attractiveness, and active engagement with all institutional and professional stakeholders. The press conference held on Tuesday 30 June by government ministers Didier Gamerdinger (Health and Social Affairs) and Jean Castellini (Finance and Economy) provided details of the concrete measures that will support these strands of the recovery.
Strengthened provisions for total temporary layoff (CTTR)
“Everyone recognises that this scheme for providing support and safeguarding jobs, which covered up to 22,000 employees in mid-March and remained in place for 14,700 in May, cannot be sustained indefinitely. It has so far cost the country €70 million,” said Didier Gamerdinger as he opened the press conference. He then provided details of the changes by sector, in line with the dates on which lockdown measures were eased:
– for companies which resumed business from 4 May, there will be no changes to the State’s contribution to CTTR for June; support will be cut by 10% in July and a further 10% in August, with businesses responsible for making up the difference;
– for companies which reopened on 2 June (cafés, restaurants, gyms, etc.), the first 10% cut will not take effect until August;
– for nightclubs, which have not yet reopened, the CTTR scheme will remain as is;
– specific provisions are in place for traders, restaurant owners and bars in Monaco-Ville that are experiencing serious difficulties – in these cases, there will be no reduction in the State’s contribution to CTTR and they will continue to receive 100% of the support available.
The Government will review the overall situation in mid-August before announcing the measures to be adopted for September.
Payment of social security contributions
The Prince’s Government intends to go further in giving a boost to sectors that have been particularly hard hit by the crisis: tourism, the events industry, culture, sport and some shops, potentially covering up to 620 businesses.
From July, the State will cover half of social security contributions (pension and health) for businesses that are deserving of support (with the exception of those already subsidised by the State). To qualify, companies must have had a turnover of less than €1 million in 2019 and be able to prove that their turnover was down by at least 20% in June.
Economic Recovery Support Commission (CARE)
Chaired by Jean Castellini and comprising representatives from the Monaco Association for Financial Activities (AMAF), the Order of Chartered Accountants, the Department of Budget and Treasury, Head of the Welcome Office Laurence Garino and the Chair of the National Council Committee on Finance and Economy, Balthazar Seydoux, CARE will, from July, review applications for support from businesses experiencing difficulties on a weekly basis.
“CARE will review applications from businesses with turnover below €5 million. They will need to submit projected balance sheets for the months from July to September. State support will take the form of covering up to 50% of fixed costs and may also extend to expenditure directly linked to reviving the business (communications, travel for the purposes of canvassing, etc.). Support will be capped at €35,000,” said Jean Castellini.
Strengthening the Principality’s attractiveness
Implementation of the Monaco Safe certification, designed to reassure clients and tourists regarding proper compliance with the health regulations in force in the Principality.
Welcome Office campaign to promote shopping and dining.
Tourist and Convention Authority marketing campaign to promote the resumption of tourism.
The aim is to boost the virtual commercial space occupied by companies. Several strands of work will help to resolve some very practical issues:
- Authorise the use of PayPal in the Principality
- Ensure that Monaco is included in drop-down lists of countries
- Optimisation of Monaco for search engines, etc.
Digital Tokens Act
Passed by the National Council in June, this act promotes investment in the economy of the future through token or coin offerings, an innovative financial tool that can help to fund sustainable projects.