Subject: Support for platform workers and small businesses during the Covid-19 crisis
The outbreak of Covid-19, in addition to the serious risks it poses for public health, is having a significant impact on society and the economy; this impact is greatest for those suffering most from the current decline in economic activity. Independent employees, including platform employees and employees in small businesses, are among the most affected categories. The Corona Response Investment Initiative and the mobilisation of the European Globalisation Adjustment Fund and the EIB Group demonstrate the Commission's strong commitment to ensuring the welfare of EU citizens and reducing the socio-economic cost of COVID-19.
The private sector is taking steps to help tackle the unprecedented situation by supporting the vulnerable as far as possible, but is unable to fully offset the losses caused by economic inactivity due to prolonged bans on the movement of people.
Given the need to create a safety net for all Europeans, how does the Commission plan:
to ensure the inclusion of all types of worker and business in the emergency aid packages planned throughout the EU?
to modernise the regulatory framework for tackling the social protection gaps faced by platform workers, especially in times of crisis?
to protect the viability of small businesses?
Answer given by Mr Schmit on behalf of the European Commission
(8 July 2020)
In response to the COVID-19 pandemic, the Commission has adopted a comprehensive economic respons e (1). The Coronavirus Response Investment Initiatives (2) allow Member States to reorient European Structural and Investment Funds (ESI Funds), also towards measures to preserve jobs.
The new instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE ) (3) will allow for up to EUR 100 billion loans, in support of Member States’ short-time work schemes and similar measures for the self-employed. Member States are responsible for the design of schemes supported by the ESI Funds or SURE, and they may cover platform workers.
The Commission unlocked EUR 1 billion from the European Fund for Strategic Investments, to allow the European Investment Fund to issue guarantees to incentivise lenders to fund European small and medium-sized enterprises (SMEs) and small mid-cap companies (4). The recovery package also foresees the strengthening of InvestEU, which will benefit SMEs through a dedicated investment window (5).
The directive on transparent and predictable working conditions (6), with the Council Recommendation on access to social protection (7), help address challenges faced by platform workers. The Commission supports Member States in improving social protection for self-employed and non-standard workers through mutual learning and it is exploring further ways to improve the working conditions of platform workers.
On 27 May 2020, the Commission proposed the Next Generation EU instrument of EUR 750 billion and targeted reinforcements to the EU’s multiannual financial framework 2021-2027. The proposals address both the solvency needs of European companies and provide support for reforms and investments conducive to more resilient economy and society.
⋅1∙ https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response/overview-commissions-response_en
⋅2∙ Proposed by the Commission on 13 March and 2 April 2020, respectively.
⋅3∙ OJ L 159, 20.5.2020, Proposed by the Commission on 2 April 2020.
⋅4∙ This will achieve an estimated EUR 8 billion financing.
⋅5∙ https://ec.europa.eu/growth/access-to-finance_en
⋅6∙ https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX:32019L1152
⋅7∙ https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.C_.2019.387.01.0001.01.ENG&toc=OJ:C:2019:387:TOC