Significant incentives for the full recovery of businesses in the sector focus According to reliable information from CNN Greece, this is what is envisaged by the new pillar of support for the sector, which is being established by the Ministry of Development and was discussed at length on Thursday afternoon at a broad meeting of the Prime Minister. Kyriakos Mitsotakis, and the participation of Ministers of State George Gerapetritis, Finance Christos Staikouras, Development Adonis Georgiadis, Deputy Minister of Finance Theodoros Skylakakis, Deputy Minister of Development Yannis Tsakiris, Deputy Ministers to the Prime Minister Theodoros Livanios and Akis Skertsos, and Secretary General to the Prime Minister Grigoris Dimitriadis, with the President of the Panhellenic Federation of Restaurant & Related Professions (POESE) George Kavvathas, as well as members of the Federation's Board of Directors.
According to statements made late Thursday afternoon by the Minister of Development, Adonis Georgiadis, a subsidy will be introduced for businesses in the catering sector, which will not cover losses but the purchase of raw materials (catering businesses that show a decrease in turnover of more than 30% in 2020 compared to 2019).
This subsidy will subsidize 7% of the annual turnover for 2019 and this amount shall not be refundable to the State.
The only obligation of catering businesses will be to submit invoices for the purchase of raw materials by December 31, 2021.
The action, implemented by the Ministry of Development and Investment, is funded by through the NSRF 2021–2027, It applies to small, medium-sized, and large companies, and for the first time includes franchise businesses. The maximum amount of aid is set at €100,000 per tax identification number and is non-refundable.
«Today, we are pleased to proceed with another significant initiative for the catering sector, worth €330 million. Our goal is clear, because we must plan for the future: when businesses reopen, when conditions allow and always with the approval of our scientists, to do so, to make your first steps as comfortable as possible, by supplying you with raw materials for the first three months of your reopening,» said the Prime Minister.
A sum of €1 billion has already been allocated to the catering sector.
«To give you an idea of the amounts spent on the catering sector, I would like to point out that approximately 65,000 unique businesses out of the approximately 77,000 businesses in the sector have participated in one or more rounds of the Refundable Advance Payment scheme. The catering sector has received amounts approaching €1 billion. And of the 410,000 employees in the sector, approximately 260,000 were furloughed at some point, with the state allocating €720 million in compensation to replace their earnings. I think this is the best proof of the practical support provided by the state—especially to the catering industry—in order to emerge as unscathed as possible from this great Covid adventure. I believe that the catering industry has endured, and I am confident that with the extension of the measures and the use of this new tool, it will be ready for battle the next day,» added Mr. Mitsotakis.
«We are united by the same concern, the government, industry representatives, and everyone involved in the restaurant business, that if possible, not a single business should close the next day," emphasized the Minister of Development and Investment., Adonis Georgiadis.
«We have taken steps to shield the Greek economy as much as possible, including the catering sector. However, the restaurant industry has a special characteristic. With the program we are announcing today, we are not going to cover losses. All sectors of the Greek economy and all businesses have suffered losses. Here, we are coming in to cover the working capital for the purchase of materials,» he added.
«The government as a whole consistently finds the fiscal and cash margins to be close to society and the sectors that are affected. From the €7.5 billion in measures we discussed a few months ago, we will now approach and exceed €14 billion,» noted the Minister of Finance. Christos Staikouras.
«This initiative will be open until July 31 so that we can also include seasonal businesses, obviously on the islands. And for the first time, we are also including franchise stores, subject to certain conditions so that we are in compliance with the NSRF. This is a significant number, as these people purchase the raw materials themselves,» noted the Deputy Minister of Development and Investment. Yannis Tsakiris.
The opening of focus goes, as reported, hand in hand and with self-tests.
Ο design The results of these tests are expected to be announced tomorrow., Friday.
What was discussed in February
At his meeting with professionals from focus, In early February, the Prime Minister announced an initial package of measures to support the sector, which, along with tourism, has been hit harder than any other by the health crisis.
The data gathered from regular meetings with industry representatives and the progress of targeted interventions show that:
- A classic restaurant with a monthly turnover of around €13,000 and nine employees, five of whom were temporarily furloughed, received a total of €42,000 in aid.
- Approximately €20,000 from the refundable deposit, €15,000 as average compensation for employees, as well as €8,200 to cover contributions.
- A small shop selling souvlaki or sandwiches with three employees and a turnover of €4,685 received total aid of €14,929.
The «framework» of measures was:
1) Maintaining full exemption from rent payments for stores in March.
2) Zero wage costs, as suspended employees continue to be compensated by the State.
3) Reduced VAT on coffee and non-alcoholic beverages until September 30, 2021.
4) State coverage of fixed costs for businesses affected since last spring.
