We hope the mentioned good practice case will encourage other governments and policymakers to do the same in their respective countries. Exhibitions and trade shows are the fastest of fast-tracks to economic recovery once the coronavirus crisis has passed and will deliver the best return on investment now. We sincerely thank UFI, EEIA, and EMECA for providing valuable information.
CASE STUDY: SLOVAKIA
Slovakia was one of the most aiding countries when it came to the meetings and exhibitions industry. Their financial aid helped the industry persevere.
EMERGENCY HELP
Expenditure measures:
On 21 April 2020, a Slovak aid scheme for preserving employment and supporting self-employed individuals affected by the coronavirus outbreak and emergency measures was announced by the State. The Slovak support measure is a wage subsidy aid scheme that allows the Slovak authorities to finance a part of the wage costs (including employer’s social security contributions) of undertakings that, due to the coronavirus outbreak, would otherwise have laid off personnel.
The compensation has benefited employers that have preserved jobs despite the obligation to cease or reduce economic activities based on the emergency state measures. The scheme also allows the Slovak authorities to compensate self-employed persons and employers affected by lower revenues due to the crisis or by the imposed restrictions of their operations. The measure is expected to support the jobs of close to 400,000 employees and 300,000 self-employed persons.
RESTART HELP
Expenditure measures:
On 16 June 2020, a €200 million Slovak scheme to support companies renting premises, which were limited or to carry out their activities due to the measures imposed by the Slovak government in the context of the coronavirus outbreak was announced. These companies had to close business on the premises, interrupt teaching (in schools and school facilities) or exclude the presence of the public from the establishment due to the coronavirus outbreak. The public support, which took the form of direct grants, was intended to cover the reduction of the rent negotiated with the landlord, up to a maximum amount of 50% of the original rent., More specifically, if a tenant negotiates a rebate of 20% of the rent with the landlord, the State will pay to the landlord, on behalf of the tenant, another 20% of the rent, thereby reducing the rent by 40% for the tenant.
This aims at mitigating the sudden liquidity shortages that the affected companies are facing due to the measures taken by the Slovak authorities to limit the spread of the coronavirus. On 19 June 2020, three Slovak aid schemes, with an overall budget of €4 billion, to support companies affected by the coronavirus outbreak. The schemes aim at providing liquidity to companies affected by the coronavirus outbreak, thus helping them continue their activities, start investments and maintain employment levels predating the coronavirus outbreak.
Measures related to public guarantees:
On 11 August 2020, a €25 million Slovak scheme to support innovative companies with limited access to credit facilities in the context of the coronavirus outbreak was introduced. The public support, which will take the form of convertible loans with maturities between 18 to 36 months, will be open to companies with a scalable innovative product or service with the potential for significant growth in international markets. The purpose of the scheme is to help innovative companies access external financing at a time when the normal functioning of credit markets has been severely disrupted by the coronavirus outbreak.
RECOVERY HELP
Expenditure measures:
On 22 December, a €100 million Slovak scheme to support companies affected by the coronavirus outbreak was announced. Under the state aid Temporary Framework, the support, in the form of direct grants, is open to companies active in all sectors except for the primary agriculture, fishery and aquaculture, and financial ones. The scheme aims to address the liquidity needs of the beneficiaries, helping them continue their activities during and after the coronavirus outbreak. Over 1,000 companies are expected to benefit from the scheme.
On 15 January 2021, the EU Commission approved an €8 million Slovak scheme to support professional sport clubs in the context of the coronavirus outbreak.
To find out more about Slovakia’s aid scheme, click here.