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The Generalitat allocates 340 million to reactivate the economic sectors most affected by the pandemic

January 19 from 2021 - 10: 37

The President of the Generalitat, Ximo Puig, yesterday presented the 'Resiste' shock plan, endowed with 340 million euros, and which is aimed at minimizing the damage and reactivating the economic sectors most affected by the restrictions derived from the pandemic.

According to the president, the aid contemplated in the plan will benefit 21.000 companies and 43.000 self-employed people in the sectors most sensitive to the paralysis of social mobility, such as hotels and tourist accommodation; hotels and restaurants; tourism activities (such as travel agencies, tour operators or reservation services), and artistic and leisure activities (such as performing arts, management of show halls, gyms, amusement parks or toy libraries).

Ximo Puig presented the 'Plan Resiste' after the meeting held with the general secretary of CCOO-PV, Arturo León; the general secretary of UGT-PV, Ismael Sáez; and the president of the CEV, Salvador Navarro, which was also attended by the Minister of Finance and Economic Model, Vicent Soler; the Minister for Sustainable Economy, Productive Sectors, Trade and Labor, Rafa Climent, and the Minister for Education, Culture and Sports, Vicent Marzà.

During his speech, the president assured that the Consell is concentrating its management on overcoming the pandemic and economic reactivation, because the priority now is "to save lives, save jobs and companies, and save families", and all this has ensured " simultaneously ".

The head of the Consell recalled that since the appearance of COVID-19, the Generalitat has allocated more than 1.000 million to face the pandemic, of which more than 170 million have been allocated to offset the impact on workers, freelancers and companies private.

He also highlighted that the Valencian Community has been the autonomy that has allocated the most aid to self-employed workers, a total of 57 million euros. However, the increase in restrictions requires "taking a new step" in supporting the productive fabric.

Regarding the need to support the economic sectors targeted by the plan, the president indicated that the hospitality industry represents, according to data from the end of 2020, "almost half of the workers who continue in ERTE and the self-employed with benefit for termination of activity ". Likewise, he pointed out that since the beginning of the pandemic, the aforementioned sectors concentrate 30% of the loss of added value and 59% of the destruction of employment in the Valencian Community. "For this reason - he assured - the Public Administrations are obliged to protect employment and the activity of companies in this period of parenthesis in their normal activity".

In addition, the head of the Consell highlighted the agility with which the agreement on the Resiste Plan has been reached, and in this sense he recalled that in the last 10 days meetings have been held with the employers' association and the unions to explore aid to the sectors most affected; The institutional table has been convened with the councils, the large city councils and the Valencian Federation of Municipalities and Provinces to agree on the COVID-19 Fund for Municipal Cooperation; and the Resiste Plan has been designed.

Four aid blocks

During his speech, the president explained that the crash plan is divided into four blocks: direct aid to companies, the self-employed and workers affected by ERTE, endowed with 105 million euros; specific aid for sectors with sustained damage throughout the pandemic, with 8 million euros; new financial instruments of the Valencian Institute of Finance (IVF) amounting to 100 million euros; and the COVID-19 Cooper-ation Fund, agreed with provincial and municipal councils, which will reach 127 million euros.

It should be noted that the different aids will not be exclusive, so that the same company or self-employed person may opt for more than one benefit included in the 'Resiste Plan', with the aim of having a real impact throughout the territory and they really respond to the needs of the different productive realities that occur within each sector.

Specifically, within the first block of aid, the main measures established in the plan are a line of 80 million euros of direct aid from the Generalitat aimed at reducing the Social Security contributions of the more than 100 companies up to 21.000% and 43.000 freelancers from the accommodation and hospitality, travel agencies, artistic, recreational and leisure sectors.

Likewise, it is contemplated to grant 8 million euros for the 26.000 self-employed workers most affected by the total closure of their activity or the drastic reduction in income. It is an autonomous aid that will be complementary to the benefit they have already received from Social Security.

In the same way, it is planned to allocate 17 million euros through direct regional aid to the 48.000 workers who still continue in ERTE today, and who suffer a situation of reduced wages "that is taking too long," said the president.

In addition, Puig has announced a specific line, endowed with 8 million euros to support leisure and entertainment activities -with special attention to nightlife- due to the restriction sustained during these months to contain the pandemic and from which they will benefit. especially the party and show halls, discos, pubs or coffee theaters.

In the third block of aid, endowed with 100 million euros, the president has announced the creation of two new business financing instruments "with very favorable conditions", which will launch the IVF, "with the aim of providing liquidity and solvency to companies during 2021 ".

It is, on the one hand, a line of subsidized loans of up to 750.000 euros for companies related to leisure, accommodation and restaurants, and related activities, through which the IVF intends to mobilize 50 million euros. These loans include a non-refundable part that can be reached according to the credit tranches up to 30%.

On the other hand, a line is created for participative loans, of up to 800.000 euros, "for companies with a limited financial situation and that before the pandemic were viable." With this line, the IVF intends to mobilize another 50 million euros.

Finally, the president recalled the creation of the COVID-19 Municipal Cooperation Fund, which has been expanded to 127 million euros by also including aid for crafts or other sectors attached to the festival that are suffering the consequences to a greater extent of the pandemic.

React-EU Funds

During the event, the president also explained that the aid will be articulated through the specific EU response fund within the Next Generation EU European recovery program, the React-EU fund, from which the Valencian Community will receive in the In the next two years, 1.250 million and that, as established in the communication of the European Commission, should be allocated precisely to economic recovery and to sustaining employment and activity in the Member States, among other objectives.

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