THIRD PACK OF SUPPORT MEASURES IN THE COVID-19 CRISIS

  • They are prohibited evictions of tenants for six months from the entry into force of the alarm state.
  • They articulate microcredit through the ICO so that tenants in vulnerable situations can face the rent payment with a return period of up to 10 years.
  • A new subsidy for domestic workers affected by the cessation or reduction of activity and for temporary workers whose contract ends and who do not have the right to benefit.
  • Sand enables Social Security to grant a moratoriums in the payment of social contributions to companies and the self-employed and the payment of debts with Social Security is allowed huntil June 30.
  • The self-employed who access the benefit for cessation of activity they may defer the Social Security quota for March for free for the days they have worked.
  • They are also included in the mortgage moratorium the properties affected by the self-employed economic activity.
  • The rights of consumers in the suspension or termination of contracts, the reimbursement of pension plans and the protection against pathological gambling.
  • Businesses they will not be able to cut basic supplies in the habitual residence of any citizen during the state of alarm.

The Council of Ministers has approved a Royal Decree-Law with a new package of economic and social measures that completes and reinforces the measures adopted in the last three weeks by the Government to minimize and counteract the impact of COVID19.

This new package of measures includes more than 50 measures that complement the security network articulated by the State to respond to the situation that the pandemic has created.

This new group of measures is divided into three blocks: first, support for workers, families, consumers, the self-employed and the most vulnerable groups, so that you can alleviate your financial situation and your fixed expenses, and thus preserve a minimum income.

Second, it they promote initiatives to sustain the productive fabric and employment, and facilitate the future recovery of the activity; and thirdly, they adopt flexibility measures for various activities and processes of the Administration.

Finally, some of the measures adopted in Royal Decree-Law 8/202 have been reinforced0, approved on March 17, in addition to extending their duration up to one month after the end of the Alarm State.

Rent moratorium

The first block of measures aims to support the people who can't pay their rent because they are in a vulnerable situation due to COVID-19 and have no housing alternative. First, evictions are suspended for six months from the entry into force of the State of Alarm.

Secondly, automatic renewal of rental contracts is implemented that expire in the three months following the entry into force of this rule. This extension will be for six months and the terms and conditions of the contract in force will be maintained.

In third place, an automatic moratorium is established on the payment of your rent for those tenants in vulnerability situation whose landlord is a great householder, both public and private, including the Social Housing Fund of financial entities. Anyone who owns more than ten properties is understood as such.

LA moratorium on the rent payment will continue while the alarm state lasts or while the vulnerability situation persists, with a maximum of four months. Once this situation is overcome, the tenant return the unpaid quota or quotas over a period not exceeding three years, without any type of penalty or interest being applied.

In fourth place, the moratorium is regulated for the case in which the lessor is not a large holder of real estate, something that happens in 85% of cases. In these circumstances, the tenant, whenever he is in a vulnerable situation, may request a postponement in paying your rent. The landlord will have seven days to accept it, propose an alternative or reject it.

In the event that there is no agreement, the tenant will have access to a transitional financing aid program at zero cost with State guarantee. The tenant may request a finalist credit, directly paid to the lessor, for an amount of up to six monthly rent, to be returned within a maximum period of ten years. This credit will have no interest, it will be granted by credit institutions and will have the endorsement of the State, through the Official Credit Institute (ICO), which will sign the corresponding agreement with the Ministry of Transport, Mobility and Urban Agenda.

For people who have more permanent problems with rent payment, a new program of direct subsidies to rent on habitual residence is also established and may be added to those mentioned above.

The standard incorporates a specific program for victims of gender violence, homeless and other especially vulnerable, in order to provide them with an immediate housing solution. A grant of up to 600 euros per month is established, which can be raised in justified cases up to 900 euros, always with a limit of 100% of the property's rent. And another 200 euros are added to pay for maintenance, community and basic supplies expenses, with a limit of 100% of them.

Mortgage moratorium extended

In terms of housing, aspects related to the mortgage moratorium regulated in Royal Decree-Law 8/2020 are clarified. Thus, the suspension period goes from one to three months; the vulnerability accreditation is adapted to the situation derived from the Alarm State, being sufficient in these circumstances with a responsible statement of the beneficiary about his situation; and it is clarified that the suspended fees are not paid at the end of the suspension, but that all remaining payments are postponed for the same period. Also added to freelancers among the groups that can benefit from this moratorium.

With the same philosophy as the moratorium on the payment of rents or mortgages, the Royal Decree-law approved today establishes the possibility of a moratorium on credit and non-mortgage loans they keep the people in vulnerable situations, including consumer credit.

Finally, it is enabled at local corporations for them to use the surplus from previous years to adopt support measures for vulnerable groups in housing.

Support in basic supplies

Another axis in which the new package of measures deepens has to do with guaranteeing basic supplies to more households. Thus expands the group of potential recipients of the electric social bond as the self-employed, who have ceased their activity or seen their income reduced by more than 75%.

In addition, in a context in which, due to a longer stay in the home derived from containment measures and due to the development in it of professional activities that are normally carried out outside the habitual residence, measures are established to guarantee the continuity of energy and water supplies In the home, prohibiting its suspension for reasons other than security of supply.

New social aid

Likewise, new benefits are established for groups that were not entitled to them.

A temporary extraordinary allowance for domestic workers who have seen their working hours reduced or their contract terminated as a consequence of COVID-19.

The amount of this benefit, which has retroactive if the cause is the current health crisis, It will be the equivalent of 70% of the employee's regulatory base. It will be compatible with the maintenance of other activities, without, in that case, the sum of remuneration may exceed the amount of the Interprofessional Minimum Wage.

Likewise, it is established that people who have a temporary contract of duration of at least two months that had expired after the declaration of the State of Alarm and that they do not reach the minimum contribution period to receive an unemployment benefit, they can receive a extraordinary allowance equivalent to 80% of the monthly amount of the Multiple Effects Public Income Indicator (IPREM), establishing access requirements based on the income situation of the family home

Other measures to support people

To alleviate the liquidity needs of citizens, the assumptions in which contributions made to pension plans can be recovered, so that they can resort to the same people who are immersed in a file of temporary regulation of employment and the self-employedthe who have ceased their activity as a result of the effects of COVID-19

Different are adopted consumer protection measures in contracts for the sale of goods and the provision of services, whether or not they are successive tracts, whose execution is impossible as a consequence of the application of the measures adopted in the declaration of the state of alarm. In these cases, Consumers may exercise the right to terminate the contract for a period of 14 dayss.

En successive tract contractsoh, that will stop the collection of new fees until the service can be rendered normally again, without this implying the termination of the contract.

Regarding services provided by various providers, case, for example, of Combined trips, the consumer may choose to request the refund or make use of the voucher that will be given by the organizer or, where appropriate, the retailer. Said bonus may be used within one year from the conclusion of the Alarm State. If not used during this period, the consumer may exercise the right of reimbursement.

In the telecommunications sector, the norm qualifies that suspension of portability only affects to those operations in which there is a need for users to physically move to stores or for physical interventions to be carried out at their homes, except in cases of force majeure. In addition, and to avoid that the consumer may be harmed by the suspension of portability operations, it is established that users cannot see their increased rates during the time that they cannot request a change of company.

Finally, in a context in which leisure activities are greatly affected by containment measures derived from the state of alarm, they are also established Limitations on advertising and promotional activities for certain online gambling activities.

Support to the productive fabric

In order to alleviate the financial situation of companies and freelancers affected by the current crisis, is enabled to the General Treasury of Social Security to grant exceptional moratoriums on the payment of social contributions.

In the case of the self-employed, it is established that those who are beneficiaries of the benefit for cessation of activity will be able pay late and without extra charge the March quotes corresponding to the days prior to the declaration of the State of Alarm.

It is allowed that companies and freelancers that do not have deferrals in force debt payment with Social Security can apply until June 30, 2020 postponement of payment of debts that must enter between April and June 2020 without applying any interest.

For access to the extraordinary benefit for cessation of activity, the norm is adapted to contemplate the situation of certain groups that have a high degree of seasonality, such as agriculture, culture, those linked to events such as Easter or others.

It is facilitated, likewise, the realization of all the procedures related to deferments in the payment of debts, moratoriums or returns of undue income through the RED System electronic communication.

In addition, they establish different measures for freelancers and companies they have seen affected by COVID-19 they can ease the payment of basic supplies such as electricity, water or gas, even reaching the possibility of suspending your payment. Amounts owed are will pay at most in the following six months at the end of the Alarm State.

The standard also establishes a series of measures that, as in past royal decree-laws, seek to preserve employment to the maximum. In this sense, the job maintenance commitments during the six-month period established in Royal Decree-Law 8/2020 to the particularities of certain sectors, particularly those related to the world of culture, taking into account its variability and alignment with specific events.

The procedures for calls for loans or grants are also made more flexible of the General Secretariat for Industry and SMEs. In this sense, the guarantees for new loans in the resolution process may be presented once the alarm state ends. Likewise, modifications may be requested in the amortization tables of loans already granted to industrial projects. Graduation criteria are established in the fulfillment of programs financed by the aforementioned General Secretariat.

The provision for CERSA is increased by 60 million euros (Spanish Re-guarantee Company), in order to guarantee a greater number of operations.

ICEX is empowered to refund companies that have incurred unrecoverable expenses for the fees paid for participation in fairs or other international promotion activities that have been called by the institution and have been canceled, postponed or affected by the COVID-19.

Suspended, for a period of one year and without the need for a prior request, the payment of interest and amortization of the credits granted by the Secretary of State for Tourism

CDTI included Among the organizations that can streamline aid and contributions to the business sector, in order to foster innovation in the fight against the pandemic, as well as guarantee the proper functioning of the business fabric. This will allow both the rapid financing of prototypes and the availability of the industrialization of medical devices considered urgent.

On the other hand, flexibility is introduced in the commercialization of fuels, given the decrease in consumption and the lower rotation of the storage tanks than expected, so that it is allowed to delay the start date of commercialization of gasoline with summer specification, being able to sell until June 30, 2020 gasolines whose vapor and distillate pressure present limits comprised between the minimum summer limit and the maximum winter limit.

And it expands in two months since the end of the Alarm State access and connection permits to electricity networks established in Law 24/2013 of the Electricity Sector, in order to give legal certainty to the promoters of electricity generation projects, on which large investments essential for the fulfillment of the objectives of penetration of new renewables depend.

Other measures

El Real Decreto-ley allows public employees, without modification of their labor circumstances, they can perform tasks other than those of their job and voluntarily support those areas and activities of a sanitary, socio-sanitary, employment nature, for the protection of vulnerable groups and those others that require reinforcement in matters of personnel as a consequence of the situation caused by COVID-19. Similarly, it enables health personnel retired person can return to work, making his activity compatible with the receipt of his pension.

On the other hand, income from the contribution for vocational training is allowed can be applied to the financing of any of the benefits and actions of the unemployment protection system, including, in this way, broader purposes than mere training.

Given the current circumstances, grants to bank foundations that they had a divestment plan already approved by the Bank of Spain to extend the term they have up to two years. In the event of opting for this expansion, a reserve fund must be provided with an annual allocation of at least 50% of the amounts received from the credit institution of which they are shareholders as a dividend.

In terms of investment, A macroprudential rule is adopted, empowering the National Securities Market Commission to modify the requirements applicable to the management companies of collective investment institutions.

Also the contracts of temporary teaching staff at the university (associates, visitors, assistants and medical assistants) that finish during the validity of the State of Alarm extendsn. Similarly extendsn go research staff contracts from calls for human resources aid made by financing agents of the State System of Science, Technology and Innovation. These extensions will have an extension equivalent to the duration of the Alarm State and exceptionally, these extensions may extend up to 3 additional months to the duration of the same.

Modification of the Law Regulating the Bases of the Local Regime

A new section 3 is added to article 46 of the Law Regulating the Bases of the Local Regime.

The current situation has highlighted that, in situations of serious crisis that prevent the normal operation of the face-to-face system of collegiate bodies of local entities, they can carry out their activity remotely by valid electronic means, provided that their participating members are in Spanish territory and their identity is accredited.

For greater guarantee, these exceptional circumstances must be expressly motivated by the convenor (Mayor, President or those who substitute them), and are logically subject to possible judicial control of such assessment.

This possibility should not be limited only to the current State of Alarm, so Law 7/1985, Regulating the Bases of Local Regime, is amended.