‘We help in a targeted way, but to a limited extent.’ Minister of Economic Affairs Micky Adriaansens presented the support package for SMEs on Friday after the Council of Ministers and knows: not all entrepreneurs will be happy with this. A conscious choice, now that it is clear that the energy crisis resulting from the Russian invasion of Ukraine will have lasting consequences. Unlimited compensation from the government is not an option. ‘We will have to find a way to deal with these prices. Ultimately, entrepreneurs will have to pass on the prices.’
Now that the European Union has decided to end its dependence on Russian gas, the transition to more sustainable energy sources has been forced to accelerate. According to Adriaansens, sustainability is indispensable for energy-intensive companies that want to get rid of their high bills. “There’s the solution.”
Energy-intensive
That is why the cabinet is targeting a select group of ‘several tens of thousands’ of entrepreneurs who use a lot of energy for their business operations and who see their energy bill explode. This mainly concerns bakers, butchers and gardeners. In order to be eligible for aid, a number of conditions must be met.
Companies are considered energy-intensive if they spend at least 12.5% of their turnover on energy costs. The cabinet is prepared to reimburse the costs of the increased energy bill up to a maximum of 160,000 euros per company. Only companies with a maximum of 250 employees and a consumption of 5,000 cubic meters of gas or 50,000 kilowatt hours of electricity are eligible.
The government is allocating a total of 3.1 billion euros for the support package. From the spring, companies can turn to the government for support. Previously, the ministry failed. According to Adriaansens, it takes time to first collect all the data and to pour the scheme into a well-functioning ICT system. In addition, the ministry does not currently have the manpower necessary to manage the scheme. Until then, the Tax and Customs Administration promises to deal more leniently with tax deferrals and has agreed with the banks to be more flexible in granting loans. The scheme will run until December 31, 2023.
housekeeping book
Although there is almost immediate criticism of the scheme, from bakers, shopkeepers and the catering industry, among others (support comes too late and does not cover the costs), State Secretary Marnix van Rij (Finance) emphasizes that the end of the large support packages from the government is in sight. .
Van Rij does not rule out that tax increases or cutbacks will be necessary. Due to the low national debt, the previous cabinet regularly spoke of ‘deep pockets’ in the corona crisis to absorb the economic blows of the pandemic. According to Van Rij, those deep pockets are ‘finity in sight’.
“It’s not like we’re letting everything go into national debt. Ultimately, we also have to pay attention to the state’s housekeeping book,’ says the minister. “We have to be strict. We can pretend to be rich to infinity, but we are not: sooner or later the bill has to be paid.’