August 4, 2021

ERTE, telework or moratorium, everyday terms with the COVID-19 crisis



The economic crisis associated with the fight against the expansion of the coronavirus has turned everyday terms such as ERTE, telework or moratorium, in the same way that during the 2008 financial crisis, others became popular as rescue or risk premium.

ERTE: The Temporary Employment Regulation File is a procedure that allows reducing the working day or suspending the employment contract, keeping workers registered with Social Security. The Government has streamlined and subsidized this figure in order for companies to maintain employment while the activity is halted.

TELET WORK: In 2019, 90.7% of those employed did not work any day at home, a situation that has changed due to the coronavirus crisis, which has possibly made teleworking the most widely used formula, as it has asked the Government, which has relaxed the law so that the workers themselves can make the risk assessment of their position.

MORATORIUM: The postponement of payment obligations is one of the measures taken by the Executive to prevent the loss of income from leading families or professionals to incur in defaults. The mortgage moratorium, that of the contributions of the self-employed to Social Security and that of consumer loans are the main ones.

PUBLIC GUARANTEE: It is the guarantee that the State contributes to the return of loans granted to private companies. The Government has announced that it will guarantee up to 100,000 million euros to facilitate companies to obtain credits and have liquidity to meet payments.

DIVIDENDING: It is the part of the profit of the companies that is distributed among its shareholders. The ECB and the European banking and insurance authorities have recommended banks and insurers not to pay dividends.

ECONOMIC HIBERNATION: Reduction of economic activity to the essential minimum with effect from March 30 to April 9 to further limit the mobility of people.

ESSENTIAL ACTIVITY: Those that do not stop during the hibernation period such as food and essential goods, health, State security forces, the Army, telecommunications and information services, electricity, gas, cleaning personnel of these companies, caregivers for the elderly and minors, funeral services, dry cleaners, the media, legal advice and administrative management, garbage collection, gas stations, tobacconists, banks, Post or courier services, among others.

RECOVERABLE RETRIBUTED PERMIT: Newly created figure where workers from non-essential activities that stop during hibernation continue to receive their wages, in exchange for recovering those hours in the remainder of the year. In practice, it involves generating a bag of hours in favor of the company, respecting the limits and break times established in the labor law.

MINIMUM INCOME: Or minimum vital income, which constitutes a commitment of the Executive for this legislature and whose implementation could be advanced to avoid an increase in the risk of poverty and inequality associated with the COVID-19 crisis.

EUROPEAN UNEMPLOYMENT INSURANCE: Unimplemented proposal for a permanent instrument for the EU to complement national unemployment systems. On the occasion of the coronavirus crisis, an emergency version has been adopted with a fund of 100,000 million to grant loans to the most affected countries, such as Spain and Italy, to help them pay for measures to prevent layoffs.

CORONABONOS: Or Eurobonds or mutual debt issue, an instrument to finance the recovery that several EU countries are demanding, such as Spain, Italy or France. The closed opposition of countries such as Germany, Austria or the Netherlands make an initiative that would imply the issuance of bonds backed with guarantees from all the Member States for the moment unfeasible.

HELICOPTER MONEY: Expansive monetary or fiscal policy that can be applied by governments or central banks that consists of directly giving money to citizens in order to stimulate the economy. It is a term used in the 70s by the Nobel Prize for Economics Milton Friedman that resembled this measure to a helicopter throwing money at citizens.

GEOLOCATION: Currently due to the Government’s decision to study the mobility of the population during the confinement based on anonymous data from mobile phone operators, as well as the launch of the official mobile application for self-diagnosis of the coronavirus that allows validation that the user is in the autonomous community that declares to be.

3D PRINTING: Modeling technology that allows a piece to be manufactured in three dimensions by superimposing materials in layers from a prototype or digital model. In the face of the coronavirus health emergency, it is being used to manufacture protective screens as well as artificial respirators, among other materials.

RECOVERY IN V, U or L: These three letters represent the speed with which the economy can recover after the abrupt crisis caused by the restriction of mobility to stop the epidemic. The V implies an immediate recovery as soon as normal activity is resumed, the U represents a longer delay and the L, the prolongation of the recession.

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