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The cost of compensation for the affected companies will double compared to the “blocking light” to an estimated three billion euros, Finance Minister Gernot Blümel (ÖVP) told reporters on Saturday night. . Additionally, there are vendor offsets that cannot yet be assessed.
In any case, retailers could not complain about today’s purchases, a local APA inspection of shopping malls and streets showed a lot of activity, in a shoe store in the center of Vienna it seemed as if the last couple were being sold in the capital federal. “It’s been really bad since yesterday,” said a salesman at a sports store. And when asked: “People are very aggressive. The mood is really strange.”
Finance Minister Blümel described how things will continue for companies as follows: Body hugging services (hairdressers, masseurs, etc.), such as the restaurant and hotel sector, will be replaced by the 80 percent of sales as of November 2019 for the closing period. There is a tiered solution for commerce, this is due to different requirements and was clarified with the constitutional service and the Chamber of Commerce.
The basis for negotiating is 40 percent sales compensation, with premiums and discounts of 20 to 60 percent. Areas with perishable and highly seasonal goods are supported to a greater extent than those sectors where goods are not subject to any or almost no depreciation and / or recovery effects, according to Blümel. As an example, he explains: Florists get 60 percent, furniture retailers get 20 percent.
Trade association threatens legal action
At least the trade association was not convinced by the argument and threatened to sue on Saturday. The private interest group of large commercial companies or individual members are considering a lawsuit in the Constitutional Court (VfGH), they locate an inequality in the state compensation for the loss of sales.
Due to the extension until December 6 inclusive, the replacement of sales for the closing time must also be requested for the first days of December, Blümel said. Applications should be possible from 23 November. In order to make the necessary adjustments, no application will be possible until then. So far 30,000 applications have been submitted for 900 million euros in replacement of sales, of which 800 million euros could be paid “in the coming days.”
In addition to compensation for sales, Blümel also offered the company the possibility to be reimbursed for its fixed costs for the fall. A reimbursement of fixed costs of up to 800,000 euros, approved by the EU Commission for a long time, must be requested from 23 November. Furthermore, Blümel continues to negotiate with the EU Commission on a different model for the fixed cost subsidy, which should bring the company up to 3 million euros of support. But negotiations are difficult here. In any case, the over-authorization in the 2020 budget of € 28 billion is enough to pay the costs of the crown’s aid.
In a first reaction, the Chamber of Commerce (WKÖ) and the Federation of Industrialists (IV) expressed themselves between understanding and caution. The measures must be “accepted for health reasons”, but it must also be clear that children are being cared for and that the announced aid flows quickly and without bureaucracy. “We just don’t have time for months of procedural questions. Now many companies are concerned about their existence,” warned Peter Buchmüller, president of the Salzburg Chamber of Commerce.
Measures in the economic sphere
The following is a brief description of the measures in the economic area: Whenever possible, the home office is recommended. The entire food sector, as well as the health sector, agricultural and feed trade, gas stations, banks, post offices, tobacconists, waste disposal companies and bicycle and motor vehicle workshops are still open. According to the Ministry of Health, it has not yet been fully clarified whether cell phone stores as well. Opening hours are limited from 6 am to 7 pm
All gastronomy remains closed to customers. Pick up of food and beverages is allowed between 6 am and 7 pm. Delivery services are allowed 24 hours. All “body-friendly services” are prohibited, all hotels and accommodation establishments are closed for tourist reasons. There are exceptions for business travelers or fitters.
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