May 14, 2021

This is the distribution of direct government aid for the self-employed and companies in each community


The Official State Gazette (BOE) publishes this Friday the Ministerial Order of Finance that establishes the distribution between the Autonomous Communities and the Cities of Ceuta and Melilla of the 7,000 million euros with which the Covid Line of direct aid to the self-employed is endowed ( entrepreneurs and professionals) and companies provided for in the Royal Decree on extraordinary measures to support business solvency in response to the economic crisis caused by the pandemic, as reported by the Ministry of Finance in a statement.

Requirements, terms and measures of the new fund of 11,000 million direct aid to the self-employed and companies

Requirements, terms and measures of the new fund of 11,000 million direct aid to the self-employed and companies

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The Royal Decree-law provides for the corresponding transfers to be made to each territorial entity charged to two extraordinary credits. One, for an amount of 5,000 million euros, destined for the Autonomous Communities –with the exception of the Balearic and Canary Islands– and the cities of Ceuta and Melilla. And the second, endowed with 2,000 million euros, for the two archipelagos, which have suffered a greater economic impact from the pandemic, given their special dependence on the tourism sector.

Andalusia will be the region that receives the highest amount, with 1,109.2 million euros, followed by Catalonia, with 993.2 million; Madrid, with 679 million, and the Valencian Community, with 647 million. These four autonomies share 68.5% of the amount of direct aid to the regions, except for the Balearic and Canary Islands, which have specifically dedicated 2,000 million due to the poor situation of the tourism industry.

The distribution criteria have been the same and with the same weighting that they have in the allocation of the REACT EU fund, as explained by the Ministry of Finance in a note, only updated on the date of publication of the Royal Decree-Law:

  • Two-thirds of its amount is distributed according to the relative weight of the income indicator for each Autonomous Community and City, which measures the moderate decline in GDP in 2020 based on the relative prosperity of each of them. The income indicator for each Community and City is the figure resulting from dividing the relative weight of each territorial entity in the fall in GDP of 2020 in relation to 2019 by their respective relative prosperity, measured through their per capita income with respect to the national per capita income.
  • Two ninth parts of the amount are distributed according to the unemployment indicator, which considers the weighted average between the weight of the Autonomous Community and the City in the total number of registered unemployed in January 2020 and its contribution to the increase in national registered unemployment since 31 December January and until the end of that year.
  • One-ninth of its amount is distributed according to the youth unemployment indicator (16-25 years) which, analogously to the previous criterion, considers the weighted average between the weight of the Autonomous Community or City in the total of young unemployed registered in January of 2020 and its contribution to the increase in youth unemployment registered throughout the past year throughout the country.

Regarding the remaining 2,000 million euros that have been reserved for the Communities of the Balearic and Canary Islands, their distribution will be made in proportion to their relative weight in the fall in 2020 of Social Security affiliates in net terms. This indicator will be measured with the reduction in the annual average number of registered affiliates between 2019 and 2020, discounting the effect of the number of workers in media ERTE in 2020, according to the Ministry.

In this case, the Canary Islands will receive 1,144 million euros in direct aid while the Balearic Islands will receive 855.7 million. The distribution of this amount has been 57.2% for Canarian companies and freelancers while Balearic entrepreneurs will take 42.8% of the 2,000 million.

The Ministry of Finance has informed that it will carry out the transfer of these resources to each Autonomous Community “within ten days after the agreement entered into with each of these territories becomes effective. Although the territorial entities may also request that the release of these funds can be made later “.

This aid package also includes a line for the restructuring of financial debt endowed with 3,000 million euros and a fund for the recapitalization of companies affected by Covid-19 of 1,000 million.

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