The move follows a similar initiative in Denmark
Translated by Alexis Veenendaal
The Cabinet wants to extend support measures for companies “as long as necessary”, but is building in additional conditions for a second round of support measures. This should, among other things, prevent companies from paying bonuses or dividends as long as they receive government support, reports the NOS.
It is also being examined whether re-training staff should be a precondition before entrepreneurs are eligible for aid, and it is being examined whether it is right for the government to pay up to 90 percent of the salary for employees in all sectors for whom there is no work. A decision for this will be made in the second week of May.
The government is making it difficult for companies to receive support, if they continue to pay bonuses and dividends. It is being investigated how such things can be curtailed: this should prevent support money, intended for job preservation, from going to shareholders and the top of a business.
Implementation will be especially difficult for smaller entrepreneurs, and would involve checking whether they have paid themselves a profit, especially if they have, for example, sold part of their company. The task is easier for listed companies.
Many parties in the House of Representatives also wish to make a series of tests before companies receive support. GroenLinks, SP and the PvdA had all previously made public demands for support based on things such as non-payment of dividends. D66 has also now joined in: companies that receive emergency support from the government for the second round may not pay bonuses and dividends this year and next, says D66 MP Van Weyenberg.
The VVD has doubts about additional conditions for companies, because they would be difficult to implement. The party would rather stick to a moral appeal, though considering that they tend to stand for small government, fiscal conservatism, and ‘free business’, that is perhaps unsurprising.
64 Billion Euros
The financial measures announced so far will remain valid until the end of May. The government has so far spent 19 Billion euros on all these measures to help the economy. On top of that, 45 Billion euros less tax revenue has been received, for which a postponement has been granted. It is expected that roughly 80 percent of this will arrive later.
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