The government decided on March 19 to launch a EUR 2-billion package of measures to boost the economy and mitigate the effects of the crisis caused by the coronavirus, Prime Minister Juri Ratas (Center) said.
“The members of the government gave their approval to a package of measures of EUR 2 billion, which represented nearly 7% of GDP. The aim of the measures is to mitigate the most difficult initial stage of the crisis in order to support and protect Estonian working people and businesses,” said Ratas. “The State will do everything in its power to ensure the functioning of the Estonian economy in exceptional circumstances.”
State funds will be used to support businesses through KredEx (link in English) and the Rural Development Foundation. The package also includes support for the Estonian Unemployment Insurance Fund’s labor market support (Tootukassa), sickness and tax benefits.
The package will allow tax debt to be postponed for 18 months, there will be a temporary suspension of the second pillar pension contributions, as well as partial compensation for the direct costs of canceled events.
From March to May, the State will reimburse employees for the first three days of sick leave for all certificates of incapacity for work. (ERR/Business World Magazine)
