What does PKP8 bring and what proposals will the Janša government consider?

Did anyone say PKP8? Proposals from the economy are already raining down on the government and its ministers.

Bobo

Many activities still do not see the green light to open at the end of the tunnel.

The Fiscal Council recently published information that the volume of all implemented measures in 2020 amounted to almost three billion, and measures with a direct effect on the balance of the general government sector amounted to 2.4 billion euros. In doing so, they wrote that it is “The actual effect so far is much smaller than the government’s estimates when the anti-crisis legislation was adopted, but it has nevertheless made a significant contribution to the deterioration of public finances.”

The Fiscal Council wants to see incentive policies aimed at strengthening long-term economic potential while maximizing the efficiency of European funds. The world, as a product of the previous global financial crisis, is thus performing its task of alerting deficits, and the reality in the pandemic world leaves world governments with no choice. The catastrophic predictions of the rocket growth of the public deficit have not (yet) come true. The fact that Slovenia shares an epidemiological fate with other EU members, if not with the entire planet, gives at least some assurance that we will repay our debts more easily and with fewer cuts than in the past decade.

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Following the withdrawal of the no-confidence motion, the government can calmly plan the PKP8.

Poor realization

The government has announced guidelines for the creation of the eighth anti-crown package. According to government estimates, the total effect of the previous seven is seven billion, and the actual realization has so far deviated significantly from these estimates. The realization of PKP1, for example, was about half of the estimated at the time of the adoption of the law, and in PKP3 only about a quarter.

According to initial forecasts, PKP8 will weigh 320 million euros. After today’s government session, it is also clear what the two key measures of the new package will be. The subsidy for waiting for work at home, together with the subsidy for part-time work, will be extended for the time being until the end of April. “As the current situation is comparable to the last quarter of 2020, we can expect a significant economic recovery only in the second half of the year,” he added Cigler King. Furthermore, the Minister explained that the state will subsidize employers by raising the minimum wage, which came into force in the new year and will henceforth amount to 1,024.24 euros gross. According to the proposal, the minimum base for social contributions will be increased from 60 percent of the average wage to the amount of the minimum wage. The measure will be in force until the end of June, and according to Cigler King’s calculations, it will relieve employers of 40 percent of the burden of raising the minimum wage.

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The Minister of Labor, Cigler Kralj, adopted a decision on a minimum increase in the minimum wage.

Dissatisfied unions

The unions once again accused Cigler Kralj of lacking social dialogue and making decisions beyond dialogue. The Association of Employers of Slovenia also opposed the minister’s decision, saying that the increase should not have taken place at all – they would have preferred to see the implementation of the legal provisions on the minimum wage frozen for at least another year. The amount of EUR 1,024.24 gross represents 120 percent net (according to a somewhat outdated calculation) of the minimum cost of living, so that this is already the lowest possible increase under the amended minimum wage law from 2018. “We point out that raising the minimum wage and thus labor costs directly offsets all previous efforts made by the government to preserve jobs during the corona crisis,” employers also wrote despite the fact that about half of all anti-crown measures are tied to job preservation measures. These totaled 1.147 billion euros.

Fifty euros for adult students

Cigler Kralj further announced the expansion of subsidies for part-time work for farms that employ workers on the basis of employment contracts, and the addition of beneficiaries of a one-time solidarity allowance for children from the 7th Anti-Crown Act with adult students who are expected to receive 50 euros. The monthly basic income and reimbursement of fixed costs will be valid until further notice, he added.

The Chamber of Commerce has also already contributed its list of what the government is supposed to do to protect their interests. In a public letter signed by the Director General of the Chamber of Commerce and Industry Sonja Šmuc, so for PKP8 they propose to include full co-financing of the increase in the minimum wage, subsidization of protective equipment, and the measure of waiting for work should be extended immediately until 30 June 2021.

Vouchers also for culture and sports?

The Chamber of Commerce and Industry proposes that the state contribute to the recovery of culture and sports and recreational activities by awarding vouchers for these activities, following the example of tourist vouchers.

The Chamber of Commerce and Industry also wants employers who are not allowed to operate due to government measures to be exempted from reimbursing aid, and the measure of reimbursement of fixed costs should be adjusted and extended. Finally, they hope to expand tourist vouchers to other areas in the form of separate vouchers for sports, recreational and cultural activities worth one hundred euros. How many of these proposals will be taken into account will be clear in the coming weeks. “The economy is alive, it employs,” the Prime Minister noted at a press conference Janez Janša. What about people?


Source: Svet24.si by novice.svet24.si.

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