Proposal for a COUNCIL IMPLEMENTING DECISION granting temporary support under Council Regulation (EU) 2020/672 to Portugal to mitigate unemployment risks in an emergency situation following the COVID-19 outbreak
Date: 2020-08-25
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU loan, Portugal, emergency aid, employment aid, epidemic, fight against unemployment, infectious disease, public expenditure, self-employed person

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   EUROPEAN COMMISSION  Brussels, 25.8.2020  COM(2020) 473 final 2020/0227 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION granting temporary support under Council Regulation (EU) 2020/672 to Portugal to mitigate unemployment risks in an emergency situation following the COVID-19 outbreak  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Council  Regulation  2020/672  (“SURE  Regulation”)  lays  down  the  legal  framework  for 
providing  Union  financial  assistance  to  Member  States,  which  are  experiencing,  or  are 
seriously threatened with, a severe economic disturbance caused by the COVID-19 outbreak. 
Support  under  SURE  serves  for  the  financing,  primarily,  of  short-time  work  schemes  or 
similar measures aimed at protecting employees and the self‐ employed and thus reducing the 
incidence of unemployment and loss of income, as well as for the financing, as an ancillary, 
of some health-related measures, in particular in the workplace. 

On 7 August 2020, Portugal requested Union financial assistance under the SURE Regulation. 
In accordance with Article 6(2) of the SURE Regulation, the Commission has consulted the 
Portuguese  authorities  to  verify  the  sudden  and  severe  increase  in  actual  and  planned 
expenditure  directly  related  to  short-time  work  schemes  and  similar  measures  and  health 
related measures, caused by the COVID-19 pandemic. In particular, it concerns: 

(1) 

(2) 

(3) 

a  measure  to  support  the  maintenance  of  employment  contracts  through  the 
temporary  interruption  of  work  or  reduction  of  normal  working  time  enshrined  in 
Portugal’s Labour Code. The measure provides a benefit to eligible firms to cover 70 
%  of  the  employees’  compensation,  with  employees’  compensation  equalling  two-
thirds  of  their  normal  gross  salary.  This  two-thirds  correction  is  subject  to  a  lower 
limit equal to the national minimum salary and an upper limit equal to three times the 
national minimum salary. Eligible firms must have suspended their business activity 
or be experiencing significant revenue losses.  

the new and simplified special support for the maintenance of employment contracts 
through  the  temporary  interruption  of  work  or  reduction  of  normal  working  time. 
This  measure  is  similar  to  the  measure  referred  to  point  (1)  but  has  simplified 
procedures  to  allow  swifter  access  to  funds.  The  measure  provides  a  benefit  to 
eligible  firms  to  cover  70  %  of  the  employees’  compensation,  with  employees’ 
compensation  equalling  two-thirds  of  their  normal  gross  salary,  as  well  as  the 
exemption  from  the  employer’s  social  security  contributions.  This  two-thirds 
correction  is  subject  to  a  lower  limit  equal  to  the  national  minimum  salary  and  an 
upper  limit  equal  to  three  times  the  national  minimum  salary.  Eligible  firms  must 
have suspended their business activity or experienced revenue losses of at least 40% 
in the period of 30 days preceding the request for support, compared with the same 
month of the previous year or with the monthly average of the two months prior to 
that period. The measure has been extended a number of times, including by revising 
the calculation of employees’ compensation to four-fifths of their normal gross salary 
and  introducing  the  phasing-out  of  relief  for  social  security  contributions  of 
benefitting firms 

in cases where firms are in crisis due to the COVID-19 outbreak, are benefitting from 
measures  referred  to  in  point  (1)  or  (2)  and  have  a  training  program  approved  by 
national  public  employment  and  training  services,  under  the  special  vocational 
programmes,  employees  and  companies  can  receive  a  training  allowance  to  cover 
income  replacement,  as  well  as  the  linked  costs  for  training,  to  take  place  during 
working hours as an alternative to reducing working time. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

a  special  support  for  firms  for  the  resumption  of  business  activity.  In  order  to 
facilitate the transition back to work and facilitate the retention of jobs, firms whose 
employees benefited from the measures referred to in point (1) or (2) may receive a 
benefit  equal  to  either  the  national  minimum  salary  per  relevant  employee  paid  in 
one  single  instalment,  or  to  twice  the  national  minimum  salary  per  such  employee 
paid  in  a  phased  manner  over  six  months.  When  support  is  provided  in  a  phased 
manner,  firms  are  also  to  benefit  from  a  partial  exemption  of  50%  from  the 
respective  employer’s  social  security  contributions  with  reference  to  the  relevant 
employees. 

an income stabilisation supplement for employees benefitting from measures referred 
to in point (1) or (2). Eligible employees are those whose gross salary with reference 
to February 2020 did not exceed twice the national minimum salary. The employees 
receive a benefit  equal to the difference between the gross salary of February 2020 
and that of the period in which the employee was covered by one of the two above-
mentioned  support  schemes,  with  a  lower  limit  of  EUR 100  and  an  upper  limit  of 
EUR 351.  

a  special  support  for  self-employed  persons,  informal  workers  and  managing 
partners.  The  measure  provides  a  monthly  benefit  equal  to  either  the  individuals’ 
registered  income,  with  an  upper  limit  of  EUR 438.81  when  income  is  lower  than 
EUR  658.21,  or  to  two-thirds  of  the  individuals’  registered  income  with  an  upper 
limit of EUR 438.81 when income is greater than EUR 658.21. An initial lower limit 
equal to EUR 219.41 was applied on the overall amount of monthly support between 
13  March  and  30  June  2020.  Eligible  persons  are  the  individuals  suspending  their 
business activity or experiencing revenue losses of at least 40% in the period of 30 
days  preceding  the  request  for  support,  compared  with  the  same  month  of  the 
previous year or with the monthly average of the two months prior to that period.  

a family allowance for employees prevented from working due to the need to assist 
their children under 12 years old or other dependents. The measure provides a benefit 
covering 50% of the employees’ compensation. As a rule, employees’ compensation 
corresponds to two-thirds of the normal gross salary, with a lower limit equal to the 
national  minimum  salary  and  an  upper  limit  equal  to  three  times  the  national 
minimum salary. 

a special support for the maintenance of trainers’ employment contracts in the light 
of  the  cancellation  of  vocational  trainings.  Public  support  consists  in  a  benefit 
covering the of trainers’ salary in spite of the vocational trainings not taking place. 

a number of regional employment-related measures in the autonomous region of the 
Azores. The specific measures, including a regional top-up on nation-wide schemes, 
namely on short-time work, support for the self-employed and for firms with a view 
to  the  resumption  of  business  activity,  are  intended  to  preserve  employment  in  the 
Azores during the COVID-19 outbreak. Support under the measures is conditional on 
preserving employment contracts and maintaining business activity. 

(10) 

a  number  of  regional  employment-related  measures  in  the  autonomous  region  of 
Madeira. The specific measures, including a regional top-up on nation-wide schemes, 
namely on short-time work, support for the self-employed and for firms with a view 
to  the  resumption  of  business  activity,  are  intended  to  preserve  employment  in  the 
Azores during the COVID-19 outbreak. Support under the measures is conditional on 
preserving employment contracts and maintaining business activity. 

EN 

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(11) 

(12) 

(13) 

(14) 

(15) 

(16) 

an allowance for employees and self-employed that are temporarily prevented from 
exercising  their  professional  activity  due  to  being  in  prophylactic  isolation.  Such 
workers are entitled to an allowance equal to their base salary.  

a  sickness  allowance  owing  to  the  contraction  of  COVID-19.  Compared  with 
Portugal’s  standard  sickness  allowance  scheme,  the  granting  of  the  COVID-19 
sickness  allowance  is  not  subject  to  a  waiting  period.  Public  support  consists  in  a 
benefit equal to the gross salary. 

the purchase of personal protective equipment to be used in the workplace, notably in 
public  hospitals,  line  ministries,  municipalities  and  the  autonomous  regions  of  the 
Azores and Madeira as a health-related measure. 

a  school  hygiene  campaign  aimed  at  ensuring  the  safe  return  to  work  of  lecturers, 
other staff members and students. 

the  testing  for  the  contraction  of  COVID-19  of  inpatients  and  workers  of  public 
hospitals, as well as of employees of nursing homes and childcare facilities.  

a  special  compensation  for  workers  in  the  National  Health  Service  involved  in 
fighting the COVID-19 outbreak. It consists in a performance bonus, paid only once, 
corresponding to an amount equal to 50 % of the employee’s normal gross salary. 

Portugal provided the Commission with the relevant information.  

Taking into account the available evidence, the Commission proposes to the Council to adopt 
an  Implementing  Decision  to  grant  financial  assistance  to  Portugal  under  the  SURE 
Regulation in support of the above measures. 

• 

Consistency with existing policy provisions in the policy area 

The present proposal is fully consistent with  Council Regulation 2020/672, under which the 
proposal is made. 

The present proposal comes in addition to another Union law instrument to provide support to 
Member States in case of emergencies, namely Council Regulation (EC) No 2012/2002 of 11 
November 2002 establishing the European Union Solidarity Fund (EUSF) (“Regulation (EC) 
No 2012/2002”). Regulation (EU) 2020/461 of the European Parliament and of the Council, 
which amends that instrument to  extend its scope to  cover major public  health emergencies 
and to define specific operations eligible for financing, was adopted on 30 March.   

• 

Consistency with other Union policies 

The proposal is part of a range of measures developed in response to the current COVID-19 
pandemic  such  as  the  “Coronavirus  Response  Investment  Initiative”,  and  it  complements 
other  instruments  that  support  employment  such  as  the  European  Social  Fund  and  the 
European Fund for Strategic Investments (EFSI)/InvestEU. By making use of borrowing and 
lending in this particular case of the COVID-19 outbreak for supporting Member States, this 
proposal  acts  as  a  second  line  of  defence  to  finance  short-time  work  schemes  and  similar 
measures,  helping  protect  jobs  and  thus  employees  and  self-employed  against  the  risk  of 
unemployment.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis for this instrument is Council Regulation 2020/672.   

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• 

Subsidiarity (for non-exclusive competence)  

The  proposal  follows  a  Member  State  request  and  shows  European  solidarity  by  providing 
Union financial assistance in the form of temporary loans to a Member State affected by the 
COVID-19  outbreak.  As  a  second  line  of  defence,  such  financial  assistance  supports  the 
government’s increased public expenditure on a temporary basis in respect of short-time work 
schemes  and  similar  measures  to  help  them  protect  jobs  and  thus  employees  and  self-
employed against the risk of unemployment and loss of income. 

Such  support  will  help  the  population  affected  and  helps  to  mitigate  the  direct  societal  and 
economic impact caused by the present COVID-19 crisis.  

• 

Proportionality 

The proposal respects the proportionality principle. It does not go beyond what is necessary to 
achieve the objectives sought by the instrument.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

Due to the urgency to prepare the proposal so that it can be adopted in a timely manner by the 
Council, a stakeholder consultation could not be carried out. 

• 

Impact assessment 

Due to the urgent nature of the proposal, no impact assessment was carried out. 

4. 

BUDGETARY IMPLICATIONS 

The  Commission  should  be  able  to  contract  borrowings  on  the  financial  markets  with  the 
purpose  of  on-lending  them  to  the  Member  State  requesting  financial  assistance  under  the 
SURE instrument.  

In  addition  to  the  provision  of  Member  State  guarantees,  other  safeguards  are  built  into  the 
framework in order to ensure the financial solidity of the scheme: 

 

 

A rigorous and conservative approach to financial management; 

A  construction  of  the  portfolio  of  loans  that  limits  concentration  risk,  annual 
exposure and excessive exposure to individual Member States whilst ensuring 
sufficient resources could be granted to Member States most in need; and 

 

Possibilities to roll over debt. 

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2020/0227 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

granting temporary support under Council Regulation (EU) 2020/672 to Portugal to 
mitigate unemployment risks in an emergency situation following the COVID-19 
outbreak 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having regard to Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of 
a  European  instrument  for  temporary  support  to  mitigate  unemployment  risks  in  an 
emergency (SURE) following the COVID-19 outbreak1, and in particular Article 6(1) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

On  11  August  2020,  Portugal  requested  financial  assistance  from  the  Union  with  a 
view  to  complementing  its  national  efforts  to  address  the  impact  of  the  COVID-19 
outbreak and its socio-economic consequences for workers.  

The COVID-19 outbreak and the extraordinary measures implemented by Portugal to 
contain the outbreak and its socio-economic and health-related impact are expected to 
have  a  dramatic  impact  on  public  finances.  According  to  the  Commission’s  2020 
Spring forecast, Portugal was expected to have a general government deficit and debt 
of 6.5% and 131.6% of gross domestic product (GDP) respectively by the end of 2020. 
According  to  the  Commission’s  2020  Summer  interim  forecast,  Portugal’s  GDP  is 
projected to decrease by 9.8% in 2020.  

The  COVID-19  outbreak  has  immobilised  a  substantial  part  of  the  labour  force  in 
Portugal.  This  has  led  to  a  sudden  and  severe  increase  in  public  expenditure  by 
Portugal  in  respect  of  short-time  work  schemes  and  similar  measures,  as  well  as  the 
recourse to relevant health-related measures related to the COVID-19 outbreak, as set 
out in recitals 4 to 17.  

“Law  No  7/2009  of  12  February”,  as  it  is  referred  to  in  Portugal’s  request  of  11 
August  2020,  introduces  a  measure  to  support  the  maintenance  of  employment 
contracts through the temporary interruption of work or reduction of normal working 
time enshrined in Portugal’s Labour Code. The measure provides a benefit to eligible 
firms to cover 70 % of the employees’ compensation, with employees’ compensation 
equalling two-thirds of their normal gross salary. This two-thirds correction is subject 
to a lower limit equal to the national minimum salary and an upper limit equal to three 
times the national minimum salary. Eligible firms must have suspended their business 
activity or be experiencing significant revenue losses.  

(5) 

“Decree-Law  No  10-G/2020  of  26  March”  and  “Decree-Law  No  27-B/2020  of  19 
June”, as they are referred to in Portugal’s request of 11 August 2020, have been the 

1 

OJ L 159, 20.5.2020, p.1. 

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5 

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basis  for  the  introduction  of  a  number  of  measures  to  address  the  impact  of  the 
COVID-19  outbreak.  This  includes  the  new  and  simplified  special  support  for  the 
maintenance of employment contracts  through the temporary interruption of work or 
reduction of normal working time. This measure is similar to the measure referred to 
in recital 4 but has simplified procedures to allow swifter access to funds. The measure 
provides  a  benefit  to  eligible  firms  to  cover  70  %  of  the  employees’  compensation, 
with  employees’  compensation  equalling  two-thirds  of  their  normal  gross  salary,  as 
well  as  the  exemption  from  the  employer’s  social  security  contributions.  This  two-
thirds correction is subject to a lower limit equal to the national minimum salary and 
an upper limit equal to three times the national  minimum  salary. Eligible firms must 
have suspended their business activity or experienced revenue losses of at least 40% in 
the  period  of  30  days  preceding  the  request  for  support,  compared  with  the  same 
month of the previous year or with the monthly average of the two months prior to that 
period. The measure has been extended a number of times, including by revising the 
calculation of employees’ compensation to four-fifths of their normal gross salary and 
introducing  the  phasing-out  of  relief  for  social  security  contributions  of  benefitting 
firms. Since the relief of social security contributions consists of forgone revenue for 
the  government,  for  the  purposes  of  Council  Regulation  2020/672,  they  can  be 
considered equivalent to public expenditure. 

In cases where firms are in crisis due to the COVID-19 outbreak, are benefitting from 
measures  referred  to  in  recitals  4  or  5  and  have  a  training  program  approved  by 
national  public  employment  and  training  services,  under  the  special  vocational 
programmes,  employees  and  companies  can  receive  a  training  allowance  to  cover 
income  replacement,  as  well  as  the  linked  costs  for  training,  to  take  place  during 
working hours as an alternative to reducing working time. 

Furthermore,  the  authorities  have  introduced  a  special  support  for  firms  for  the 
resumption of business  activity.  In order to  facilitate the transition  back to work and 
facilitate  the  retention  of  jobs,  firms  whose  employees  benefited  from  the  measures 
referred to in recitals 4 or 5 may receive a benefit equal to either the national minimum 
salary  per  relevant  employee  paid  in  one  single  instalment,  or  to  twice  the  national 
minimum salary per such employee paid in a phased manner over six months. When 
support  is  provided  in  a  phased  manner,  firms  are  also  to  benefit  from  a  partial 
exemption  of  50%  from  the  respective  employer’s  social  security  contributions  with 
reference to the relevant employees. 

Finally, under Decree-Law No 27-B/2020 of 19 June, the authorities have introduced 
an income stabilisation supplement for employees benefitting from measures referred 
to in recitals 4 or 5. Eligible employees are those whose gross salary with reference to 
February  2020  did  not  exceed  twice  the  national  minimum  salary.  The  employees 
receive a benefit equal to the difference between the gross salary of February 2020 and 
that  of  the  period  in  which  the  employee  was  covered  by  one  of  the  two  above-
mentioned  support  schemes,  with  a  lower  limit  of  EUR 100  and  an  upper  limit  of 
EUR 351.  
“Decree-Law No 10-A/2020 of 13 March” and “Law No 2/2020 of 31 March”2 as they 
are referred to in Portugal’s request of 11 August 2020, introduce a special support for 
self-employed  persons,  informal  workers  and  managing  partners.  The  measure 
provides a monthly benefit equal to either the individuals’ registered income, with an 
upper limit of EUR 438.81 when income is lower than EUR 658.21, or to two-thirds of 

(6) 

(7) 

(8) 

(9) 

2 

as amended by Law 27-A/2020 of 24 July; 

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(10) 

(11) 

(12) 

(13) 

the individuals’ registered income with an upper limit of EUR 438.81 when income is 
greater than EUR 658.21. An initial lower limit equal to EUR 219.41 was applied on 
the overall amount of monthly support between 13 March and 30 June 2020. Eligible 
persons are the individuals suspending their business activity or experiencing revenue 
losses  of  at  least  40%  in  the  period  of  30  days  preceding  the  request  for  support, 
compared  with  the  same  month  of  the  previous year  or  with  the  monthly  average  of 
the two months prior to that period.  

“Decree-Law No 10-A/2020 of 13 March”, as it is referred to in Portugal’s request of 
11 August 2020, introduces a family allowance for employees prevented from working 
due  to  the  need  to  assist  their  children  under  12  years  old  or  other  dependents.  The 
measure provides a benefit covering 50% of the employees’ compensation. As a rule, 
employees’ compensation corresponds to two-thirds of the normal gross salary, with a 
lower  limit  equal  to  the  national  minimum  salary  and  an  upper  limit  equal  to  three 
times  the  national  minimum  salary.  This  measures  can  be  considered  as  a  similar 
measure to short-time work schemes, as referred to in Regulation (EU) 2020/672, as it 
provide income support to employees, which will help to cover the costs of childcare 
during  school  closures  and  therefore  help  parents  to  continue  working,  preventing 
putting the employment relation at risk.  

“Government  Order  No  3485-C/2020  of  17  March”,  “Government  Order  No 
4395/2020 of 10 April” and “Government Order No 5897-B/2020 of 28 May”, as they 
are referred to in Portugal’s request of 11 August 2020, introduce a special support for 
the maintenance of trainers’  employment  contracts  in  the light  of the cancellation of 
vocational trainings. Public support consists in a benefit covering the trainers’ salary 
in spite of the vocational trainings not taking place. 

“Resolution of the Council of the Regional Government of the Azores No 97/2020 of 
8  April”,  “Resolution  of  the  Council  of  the  Regional  Government  of  the  Azores  No 
120/2020 of 28 April”, “Resolution of the Council of the Regional Government of the 
Azores  No  128/2020  of  5  May”,  “Resolution  of  the  Council  of  the  Regional 
Government of the Azores No 129/2020 of 5 May”, “Resolution of the Council of the 
Regional  Government  of  the  Azores  No  195/2020  of  15  July”,  “Resolution  of  the 
Council  of  the  Regional  Government  of  the  Azores  No  196/2020  of  15  July”  and 
“Resolution of the Council of the Regional Government of the Azores No 200/2020 of 
17 July”, as they are referred to in Portugal’s request of 11 August 2020, introduce a 
number  of  regional  employment-related  measures  in  the  autonomous  region  of  the 
Azores.  The  specific  measures,  including  a  regional  top-up  on  nation-wide  schemes, 
namely on short-time work, support for the self-employed and for firms with a view to 
the  resumption  of  business  activity,  are  intended  to  preserve  employment  in  the 
Azores during the COVID-19 outbreak. Support under the measures is conditional on 
preserving employment contracts and maintaining business activity. 

“Resolution of the Regional Government of Madeira No 101/2020 of 13 March” and 
“Ordinance  No  133-B/2020  of  the  Vice-Presidency  of  the  Regional  Government  of 
Madeira  and  of  the  Regional  Secretariat  for  Social  Inclusion  and  Citizenship  of  22 
April”,  as  they  are  referred  to  in  Portugal’s  request  of  11  August  2020,  introduce  a 
number  of  regional  employment-related  measures  in  the  autonomous  region  of 
Madeira. The specific measures, including a regional top-up on nation-wide schemes, 
namely on short-time work, support for the self-employed and for firms with a view to 
the  resumption  of  business  activity,  are  intended  to  preserve  employment  in  the 
Azores during the COVID-19 outbreak. Support under the measures is conditional on 
preserving employment contracts and maintaining business activity. 

EN 

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(14) 

“Decree-Law  No  10-A/2020  of  13  March”  and  “Law  No  2/2020  of  31  March”3,  as 
they are referred to in Portugal’s request of 11 August 2020, provide for an allowance 
for employees and self-employed that are temporarily prevented from exercising their 
professional activity due to being in prophylactic isolation. Such workers are entitled 
to  an  allowance  equal  to  their  base  salary.  The  legal  basis  also  introduce  a  sickness 
allowance owing to the contraction of COVID-19. Compared with Portugal’s standard 
sickness allowance scheme, the granting of the COVID-19 sickness allowance is not 
subject  to  a  waiting  period.  Public  support  consists  in  a  benefit  equal  to  the  gross 
salary. 

(15) 

“Decree-Law  No  10-A  of  13  March”,  as  it  is  referred  to  in  Portugal’s  request  of  11 
August 2020, allow for the purchase of personal protective equipment to be used in the 
workplace,  notably  in  public  hospitals,  line  ministries,  municipalities  and  the 
autonomous  regions  of  the  Azores  and  Madeira  as  a  health-related  measure. 
Furthermore, the legal base introduces a school  hygiene campaign aimed at ensuring 
the safe return to work of lecturers, other staff members and students 

(16)  The  authorities  have  introduced  the  testing  for  the  contraction  of  COVID-19  of 
inpatients and workers of public hospitals, as well as of employees of nursing homes 
and  childcare  facilities.  This  amount  is  financed  from  the  general  budget  and  is, 
therefore, without an explicit legal base. 

(17)  Finally, “Law No 27-A/2020 of 24 July”, as  it is  referred to  in  Portugal’s request  of  
11 August 2020, introduces a special compensation for workers in the National Health 
Service  involved  in  fighting  the  COVID-19  outbreak.  It  consists  in  a  performance 
bonus, paid only once, corresponding to an amount equal to 50 % of the employee’s 
normal gross salary. 

(18)  Portugal fulfils the conditions for requesting financial assistance set out in Article 3 of 
Regulation  (EU)  2020/672.  Portugal  has  provided  the  Commission  with  appropriate 
evidence that the actual and planned public expenditure has increased by EUR 5 934 
462 488 as of 1 February 2020 due to the national measures taken to address the socio-
economic  effects  of  the  COVID-19  outbreak.  The  increase  directly  related  to  the 
measures  above  that  are  short-time  work  schemes  or  similar  measures  constitutes  a 
sudden and severe increase because it is related to both new measures and an increase 
in  demand  for  existing  measures,  which  together  cover  a  significant  proportion  of 
undertakings and the labour force in Portugal.  

(19)  The Commission has consulted Portugal and verified the sudden and severe increase in 
the actual and planned public expenditure directly related to short-time work schemes 
and  similar  measures,  as  well  as  the  recourse  to  relevant  health-related  measures 
related  to  the  COVID-19  outbreak,  referred  to  in  the  request  of  11  August  2020,  in 
accordance with Article 6 of Regulation (EU) 2020/672.  

(20)  Financial assistance should  therefore be provided with  a view to  helping Portugal to 
address the socio-economic effects of the severe economic disturbance caused by the 
COVID-19 outbreak. 

(21)  This decision should be without prejudice to the outcome of any procedures relating to 
distortions of the operation of the internal market that may be undertaken, in particular 
under Articles 107  and  108 TFEU.  It  does not  override the  requirement  for Member 
States to notify instances of potential State aid to the Commission under Article 108 
TFEU. 

3 

as amended by Law 27-A/2020 of 24 July. 

EN 

8 

  EN 

                                                 
(22)  Portugal  should  inform  the  Commission  on  a  regular  basis  of  the  implementation  of 
the planned public expenditure, in order to enable the Commission to assess the extent 
to which Portugal has implemented that expenditure. 

(23)  The  decision  to  provide  financial  assistance  has  been  taken  taking  into  account 
existing  and  expected  needs  of  Portugal,  as  well  as  requests  for  financial  assistance 
pursuant  to  Regulation  (EU)  2020/672  already  submitted  or  planned  to be  submitted 
by other Member States, while applying the principles of equal  treatment,  solidarity, 
proportionality and transparency, 

HAS ADOPTED THIS DECISION:  

Portugal fulfils the conditions set out in Article 3 of Regulation (EU) 2020/672.  

Article 1 

1. 

2. 

3. 

4. 

5. 

6. 

Article 2 

The Union shall make available to Portugal a loan amounting to a maximum of EUR 
5 934 462 488. The loan shall have a maximum average maturity of 15 years. 

The availability period for financial assistance  granted by this Decision shall be 18 
months starting from the first day after the entry into force of this Decision.  

The  Union  financial  assistance  shall  be  made  available  by  the  Commission  to 
Portugal in a maximum of eight instalments. An instalment may be disbursed in one 
or several tranches. The maturities of the tranches under the first instalment may be 
longer than the maximum average maturity referred to in paragraph 1. In such cases, 
the maturities of further tranches shall be set so that the maximum average maturity 
referred to in paragraph 1 is respected once all instalments have been disbursed.  

The  first  instalment  shall  be  released  subject  to  the  entry  into  force  of  the  loan 
agreement provided for in Article 8(2) of Regulation (EU) 2020/672.   

Portugal  shall  pay  the  cost  of  funding  of  the  Union  referred  to  in  Article  4  of 
Regulation (EU) 2020/672 for each instalment plus any fees, costs and expenses of 
the Union resulting from any funding.  

The Commission shall decide on the size and release of instalments, as well as on the 
size of the tranches.  

Portugal may finance the following measures: 

Article 3  

(a) 

(b) 

(c) 

the  support  for  the  maintenance  of  employment  contracts  through  the  temporary 
interruption of work or reduction of normal working, as provided for by Articles 298 
- 308 of Law No 7/2009 of 12 February; 

the new and simplified special support for the maintenance of employment contracts 
through the temporary interruption of work or reduction of normal working time, as 
provided for by Decree-Law No 10-G/2020 of 26 March  and Article 2  of Decree-
Law No 27-B/2020 of 19 June; 

the  special  vocational  programmes  for  the  maintenance  of  employment  contracts 
through the temporary interruption of work or reduction of normal working time, as 
provided for by Articles 7 - 9 of Decree-Law No 10-G/2020 of 26 March; 

EN 

9 

  EN 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

(m) 

the new special support for firms for the resumption of business activity, as provided 
for  by  Articles  4(1)-(7)  and  (10)-(12),  and  5  of  Decree-Law  No  27-B/2020  of  19 
June; 

the new income stabilisation supplement for employees covered by either the above-
mentioned  support  for  the  maintenance  of  employment  contracts  through  the 
temporary  interruption  of  work  or  reduction  of  normal  working  time  enshrined  in 
Portugal’s Labour Code, or the new and simplified support introduced in response to 
the COVID-19 pandemic as provided for by Article 3 of Decree-Law No 27-B/2020 
of 19 June; 

the  new  and  progressive  special  support  for  the  maintenance  of  employment 
contracts through the temporary reduction of normal working time as provided for by 
Decree-Law No 46-A/2020 of 30 July; 

the  new  special  support  for  the  self-employed,  informal  workers  and  managing 
partners  as  provided  for  by  Articles  26  -  28  of  Decree-Law  No  10-A/2020  of  13 
March and Article 325-G of Law No 2/2020 of 31 March as amended by Article 3 of 
Law 27-A/2020 of 24 July; 

the family allowance for employees prevented from working due to the need to assist 
their children under 12 years old or other dependents as provided for by Article 23 of 
Decree-Law No 10-A/2020 of 13 March; 

the special support for the maintenance of trainers’ employment contracts in the light 
of the cancellation of vocational trainings as provided for by Government Order No 
3485-C/2020  of  17  March,  Government  Order  No  4395/2020  of  10  April  and 
Government Order No 5897-B/2020 of 28 May; 

the regional employment-related measures in the autonomous region of the Azores as 
provided for by Resolution of the Council of the Regional Government of the Azores 
No 97/2020 of 8 April, Resolution of the Council of the Regional Government of the 
Azores  No  120/2020  of  28  April,  Resolution  of  the  Council  of  the  Regional 
Government of the Azores No 128/2020 of 5 May, Resolution of the Council of the 
Regional  Government  of  the  Azores  No  129/2020  of  5  May,  Resolution  of  the 
Council  of  the  Regional  Government  of  the  Azores  No  195/2020  of  15  July, 
Resolution of the Council of the Regional Government of the Azores No 196/2020 of 
15 July and Resolution of the Council of the Regional Government of the Azores No 
200/2020 of 17 July; 

the regional employment-related measures in the autonomous region of Madeira, as 
provided for by Resolution of the Regional Government of Madeira No 101/2020 of 
13  March  and  Ordinance  No  133-B/2020  of  the  Vice-Presidency  of  the  Regional 
Government  of  Madeira  and  of  the  Regional  Secretariat  for  Social  Inclusion  and 
Citizenship of 22 April; 

the allowance for employees and self-employed in prophylactic isolation as provided 
for  by  Article  19  of  Decree-Law  No  10-A/2020  of  13  March  and  Article  325-F  of 
Law No 2/2020 of 31 March as amended by Article 3 of Law No 27-A/2020 of 24 
July; 

the  sickness  allowance  owing  to  the  contraction  of  COVID-19  as  provided  for  by 
Article 20 of Decree-Law No 10-A/2020 of 13 March and Article No 325-F of Law 
No 2/2020 of 31 March as amended by Article 3 of Law No 27-A/2020 of 24 July; 

EN 

10 

  EN 

(n) 

(o) 

(p) 

(q) 

the purchase of personal protective equipment to be used in the workplace, notably in 
public  hospitals,  line  ministries,  municipalities  and  the  autonomous  regions  of  the 
Azores  and  Madeira  as  provided  for  by  Article  3  of  Decree-Law  No  10-A  of  13 
March; 

the  school  hygiene  campaign  as  provided  for  by  Article  9  of  Decree-Law  No  10-
A/2020 of 13 March; 

the  testing  for  contraction  of  COVID-19  of  inpatients  and  workers  of  public 
hospitals, as well as of employees of nursing homes and childcare facilities; 

the new special compensation for workers in the National Health Service involved in 
fighting the COVID-19 outbreak as provided for by Article 42-A of Law No 2/2020 
of 31 March as amended by Article 3 of Law No 27-A/2020 of 24 July. 

Portugal shall inform the Commission by [DATE: 6 months after date of publication of this 
Decision],  and  every  6  months  thereafter  of  the  implementation  of  the  planned  public 
expenditure until such time as that planned public expenditure has been fully implemented. 

Article 4 

This Decision is addressed to the Portuguese Republic. 

Article 5 

This Decision shall be published in the Official Journal of the European Union.  

Done at Brussels, 

Article 6 

For the Council 
The President 

EN 

11 

  EN