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The Principality Launches An Array of Financial Support for Businesses and Employees

With the health crisis linked to Covid-19, the Principality, like the rest of the world, is facing an unprecedented situation. The repercussions are both economic and social and with the cancellation of major events in terms of economic spinoffs (Grand Prix, Anti-Aging Expo, Monte-Carlo Rolex Masters, etc.) the challenges are immense. And to be resilient, everyone, businesses and employees alike, have and will need support.

Recognition of the Efforts of Public Service Workers With a Bonus of 1000 euros

Serge Telle, minister of state is himself still in home confinement, reported to be working at full pace , no doubt medicated with paracetamol and Viramin C as is Prince Albert. He still managed to do a press interview in which he revealed that the Sovereign has requested special recognition in the form of an exceptional bonus to be paid to public service workers who have been doing their utmost, fully engaged, to help contain the coronavirus epidemic.

Financial Support for Businesses and Employees
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There is a new Monitoring Committee chaired by Serge Telle. Its first meeting will be held on Monday, March 30. No doubt this 1000 euro bonus for exemplary tireless work by public service workers will be a priority on the agenda. 

Here are the main measures implemented by the Government which have garnered the strong support also of the Conseil National. 

• more flexible teleworking;

• deferment of payment of social charges 

• subsidies for temporary partial or total unemployment 

• improvement of bank loans or zero-rate loans granted by banks (and whose interest will be paid by the State;). Basically a Monaco business or businessman, professional or entrepreneur is entitled to a zero interest loan from their bank to support their business. 

• establishment of a guarantee fund of € 50 million for loans granted, going from 65% to 100%; (so if a company was in difficulty and could not pay back a loan it could apply to this fund for help 

• postponement of payment of VAT to companies for a period of 3 months (though not on final sale to the consumer which remains payable as usual) ; 

implementation of an extraordinary minimum income for the self-employed; at a level a little bit more than the minimum wage (SMIC); 

Financial Support for Businesses and Employees
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• abolition of rents and charges for the entire 2nd quarter of 2020 for traders occupying premises in specially designated areas for Monegasques (Domanieux). Note that the Town Hall has made a similar arrangement in the municipal premises. Private landlords who have commercial tenants are implored to show leniency in good faith in respect of tenants in difficulty in the interests of the long-term economic health of the Principality 

Reserves to Protect Public Finances are deployable under the Constitution. The normal pattern of income and expenditures is undoubtedly going to be exceptionally impacted. To avoid borrowing or bringing in taxes there is a resort to Reserve Funds – reported as last deployed as long as 8 years ago. 

More information:

> Find Covid-19 information from the Government, in particular that dedicated to companies and employees, gathered on a simple and efficient dedicated site: https://covid19.mc/

> Another Covid-19 link dedicated to companies with the Public Service Government site:

https://service-public-entreprises.gouv.mc/Covid-19/Informations-pratiques-Covid-19

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