€6bn package to boost economy (new)

Companies which see their turnover fall by at least 30% because of the credit crisis will be able to apply for government help to pay workers if they cut their hours or are forced to lay off staff, social affairs minister Piet Hein Donner is reported as saying on Monday.


The measure is one of a €6bn package announced by the government on Friday evening to stimulate consumer spending and help the economy withstand the worldwide financial crisis.
The money to pay staff that are temporarily laid off or have had their working hours cut will come from the unemployment benefit (WW) fund and can be claimed for up to six months.
Donner says he hopes the move will stop companies making hasty decisions and sacking staff who will be needed again once the economy picks up again, reports ANP news service.
Other measures in the government’s rescue package include the re-introduction of accelerated write-offs on investments for businesses, which is expected to generate €2bn in tax benefits for companies.
The government has also pledged to pay its bills on time and to lift the four-year lock-up on tax-free save-as-you-earn (spaarloon) schemes.

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