Royal Decree-Law 11/2020 of 31 March adopting urgent complementary social and economic measures to face COVID-19. Correction of errors

OFFICIAL STATE GAZETTE No. 91 Wednesday, April 1, 2020 Sec. I. Page 27885 I. GENERAL PROVISIONS HEAD OF STATE 4208 Royal Decree-Law 11/2020, of March 31, adopting urgent complementary measures in the social and economic sphere to face COVID-19. STATEMENT OF MOTIVES I On March 11, 2020, the World Health Organization declared the public health emergency caused by COVID-19 an international pandemic. The rapid spread, both nationally and internationally, has motivated the need to react quickly and adopt urgent and decisive measures with the aim of mitigating the impact of this unprecedented crisis. This health crisis is having a direct impact on the economy and society, on production chains and on the daily lives of citizens, as well as on financial markets, which have been subject to high volatility in recent weeks. Beyond the impact on the global economy, containment health measures imply a temporary reduction in economic and social activity for the productive and social fabric, restricting mobility and paralyzing the activity of numerous sectors, with significant income losses for households, self-employed workers, and companies. The impact that the current emergency situation ultimately has will depend, to a large extent, on the mobilization of national and European Union resources and on the coordination between budgetary, monetary, financial, and structural policies. In these exceptional circumstances, economic policy must be oriented towards protecting employment, helping the most vulnerable, and maintaining the productive fabric. A rapid return to normality should be fostered once mobility conditions are restored and containment measures are lifted. In the face of this public health emergency, the Government of Spain has been adopting urgent response measures that are added to actions in the community and international spheres. Thus, during the last few weeks, a broad package of economic and social measures has been approved to act on three major fronts: first, to fight the epidemic by strengthening health services and research; second, to support all citizens, that is, workers, families, and self-employed workers, paying special attention to the most vulnerable; and third, to support economic activity with liquidity and flexibility measures aimed at alleviating costs for companies. All these measures aim to maintain a minimum level of economic activity in the most affected sectors. That is, to prevent the economic slowdown derived from a conjunctural situation like the current one from having a structural impact that hinders economic and social recovery once this exceptional situation is overcome. All these measures are included in the following Royal Decree-Laws: Royal Decree-Law 6/2020, of March 10, adopting certain urgent measures in the economic sphere and for the protection of public health; Royal Decree-Law 7/2020, of March 12, adopting urgent measures to respond to the economic impact of COVID-19; Royal Decree-Law 8/2020, of March 17, on extraordinary urgent measures to face the economic and social impact of COVID-19; and Royal Decree-Law 9/2020, of March 27, adopting complementary measures in the labor sphere to alleviate the effects derived from COVID-19. Taking into account the evolution of events and the rapid evolution of infections, on a national and international scale, on March 25, the Congress of Deputies, prior to the Agreement of the Council of Ministers, approved, until 00:00 hours on April 12, the extension of the state of alarm established in Royal Decree 463/2020, of March 14, declaring the state of alarm for the management of the health crisis situation occasioned by COVID-19, which includes, among other matters, limitations on freedom of movement, with the effects this entails for workers, companies, and citizens. Subsequently, Royal Decree-Law 10/2020, of March 29, was approved, which regulates a paid, recoverable leave for employees who do not provide essential services, in order to reduce population mobility in the context of the fight against COVID-19. This paid, recoverable leave is established, as mandatory and limited in time between March 30 and April 9 (both inclusive), for all labor personnel providing services in companies or entities of the public or private sector that develop non-essential activities classified as such, excepting workers whose contracts are suspended during the indicated period and those who can continue to provide services remotely. All these actions are aligned with the measures being adopted by countries in our environment and in accordance with the recommendations of European Union and international organizations. In recent weeks, and attending to the evolution of the health crisis at the European and international levels, broad-reaching economic and social measures are beginning to be adopted by various countries, aimed at strengthening health systems, providing liquidity to the economy, maintaining employment, as well as protecting families and the most vulnerable. Within the framework of the European Union, and at the international level, through the G-20, IMF, OECD, and other organizations, the international community is trying to coordinate its actions, sharing adopted measures and best practices and launching actions aimed at supporting deployed efforts, proposing joint action plans. At the European level, Member States have adopted fiscal support measures for the economy of almost 2% of the GDP of the euro area and launched liquidity provision schemes in support of workers and companies valued at 13% of joint GDP. The ECB, for its part, has adopted exceptional measures to support the European economy, among others through its Pandemic Emergency Purchase Programme (PEPP) valued at 750 billion euros, the European Commission has adopted the decision to activate the escape clause of the Stability and Growth Pact, and the European Investment Bank has proposed additional in-depth actions to expand the provision of guarantees to European companies. With the objectives of continuing to protect and support the productive and social fabric, minimizing the impact, and facilitating the recovery of economic activity as soon as this public health emergency situation begins to subside, a new package of measures is presented that reinforces, complements, and expands those previously adopted, forming a complete economic and social package to respond to all citizens. In this context, the approval of this royal decree-law on urgent measures responds to the persistence and deepening of the exceptional economic and social circumstances previously mentioned, adding to the measures adopted at the community level and completing those taken by the Government in recent weeks. Specifically, this new royal decree-law pursues, first, the adoption of a new package of social measures aimed at supporting workers, consumers, families, and vulnerable groups, with special emphasis on those who need it most; and second, the implementation of a set of measures of diverse nature with direct impact on the reinforcement of economic activity, as well as actions aimed at supporting companies and self-employed workers. A set of measures is also included that allows adjusting the functioning of the Administration to current needs, undertaking measures regarding annual accounts of public sector entities, regarding liquid availability and donations, as well as in the financing granted by territorial entities. The evolution of the health crisis requires the prolongation over time of the measures adopted in Royal Decree-Law 8/2020, in order to mitigate the economic and social impact derived from the spread of the disease, maintaining as a priority the protection of families, self-employed workers, and companies most directly affected. To this end, in application of the Tenth Final Provision of Royal Decree-Law 8/2020, the Twelfth Final Provision is included, which expressly determines the extension of the validity of all measures adopted for a period of one month after the end of the state of alarm, reinforcing or developing some of them for greater effectiveness. Thus, this Royal Decree-Law is structured in 3 chapters, 54 articles, 22 additional provisions, 5 transitional provisions, 13 final provisions, and 4 annexes. II Support for workers, consumers, families, and vulnerable groups Chapter 1 regulates a broad package of measures to support workers, consumers, families, and the most vulnerable groups. Support for workers, consumers, families, and vulnerable groups to alleviate their financial situation and allow them to have minimum income and contribute to the relief of their fixed expenses is one of the Government's strategic priorities, especially relevant in current circumstances, with special importance being the adoption of measures that ensure that no one is left in a situation of exclusion as a consequence of the COVID-19 health crisis. Section 1. Measures aimed at families and vulnerable groups Section I regulates a new package of measures to support families and the most vulnerable groups, who, after the paralysis of much economic activity, have seen their incomes affected and, consequently, their ability to meet the expenses necessary for the maintenance of their households. First, measures are adopted aimed at supporting the rental of vulnerable persons. In Spain, in 85% of housing rentals, the owner is a natural person, a small owner. This particularity of the rental market in Spain makes it especially necessary that the measures adopted facilitate agreements between the parties to allow the payment of rents. Proposals are therefore established in this area aimed at the necessary protection of the most vulnerable groups who may see their ability to meet rent significantly affected, while guaranteeing an equilibrium between the parties that prevents the vulnerability of tenants from being transferred to landlords, especially those for whom the income generated by rental rent may be essential. In this context, the measures adopted in this royal decree-law are oriented towards a triple objective: First, to respond to the situation of vulnerability in which habitual housing tenants incur as a consequence of unforeseen circumstances due to the COVID-19 health crisis, especially those who were already making a high effort to pay rents, but also those who, not being previously in that situation, find themselves in it circumstantially now. Second, to design measures of equilibrium that prevent the vulnerability from being transferred to small owners when resolving the situation of tenants. And third, to mobilize sufficient resources to achieve the pursued objectives and respond to situations of vulnerability. With these objectives, the royal decree-law establishes, among other measures, the suspension of evictions for vulnerable households without alternative housing and the extraordinary extension of habitual housing rental contracts. Likewise, measures are established to procure a moratorium on rental debt for persons renting habitual housing in a situation of economic vulnerability. In this sense, a new Rental Aid Program is also incorporated into Royal Decree 106/2018, of March 9: the "Program of aids to contribute to minimizing the economic and social impact of COVID-19 on habitual housing rentals", and the creation, through agreement between the Ministry of Transport, Mobility and Urban Agenda and the Official Credit Institute (ICO), of a specific state guarantee line to which all households that may be in a situation of vulnerability as a consequence of the expansion of COVID-19 can have access, and which will not entail any type of expenses or interest for the applicant. Second, the suspension period is extended to 3 months and technical adjustments are made to facilitate the application of the mortgage debt moratorium for the acquisition of habitual housing introduced by Royal Decree-Law 8/2020, of March 17, on extraordinary urgent measures to face the economic and social impact of COVID-19. Specifically, it is clarified that suspended installments are not to be liquidated once the suspension ends, but that all future payments must be postponed by the duration of the suspension. The concept of "basic expenses and supplies" is also clarified for the purposes of defining the vulnerability threshold, including in this concept expenses associated with electricity, gas, heating oil, running water, and fixed and mobile telecommunications services, and the accreditation of vulnerability is adapted to difficulties derived from the state of alarm that may prevent the obtaining of certain documents, through the presentation of a responsible declaration. The information that financial entities must send to the Bank of Spain is also expanded, in order to facilitate the monitoring of the impact of this measure, as well as the supervision and sanction regime. In this way, greater legal certainty is achieved in the application of the moratorium. The mortgage debt moratorium of Royal Decree-Law 8/2020, of March 17, initially intended for the habitual housing of natural persons, is now extended to two new groups: that of self-employed workers, entrepreneurs, and professionals regarding properties affected by their economic activity, on the one hand, and to natural persons who have rented properties for which they do not receive rental income in application of measures in favor of tenants as a consequence of the state of alarm, on the other. Likewise, the amount of the surplus that Local Entities can allocate to social spending and investments, considered financially sustainable investments, as established in Article 3 of Royal Decree-Law 8/2020, of March 17, which fixed the amount for the entire said subsector at 300 million euros, is individualized. The application of this rule and the monitoring that will correspond to the Ministry of Finance requires entities to supply the necessary information, so an annex with the form is included. Furthermore, given the current situation, by reason of its exceptional nature and the urgency in executing expenses necessary to meet the needs that arise in relation to the application of that provision, the Presidents of local corporations are enabled to approve credit modifications consisting of extraordinary credits or credit supplements by Decree. Furthermore, with the objective of ensuring that citizens are not excluded from the financial system due to their inability to temporarily meet their financial obligations as a consequence of the COVID-19 health crisis, parallel to housing mortgage financing, this royal decree-law expands the scope of the moratorium to non-mortgage credits and loans held by persons in a situation of economic vulnerability, including consumer credits. To compatibilize this new moratorium with the mortgage one of Royal Decree-Law 8/2020 and the rental moratorium of this royal decree-law, the regime for accrediting this non-mortgage moratorium is adjusted with two objectives. First, it is established that the application of a possible mortgage or rental moratorium is not taken into account for calculating whether the limit of the mortgage burden or rental rent of 35% of income has been reached or not. This aims to guarantee equitable treatment of all creditors and landlords. Second, it aims to cover the case of those who do not face mortgage debts or rental rent but must face one or several loans that represent more than 35% of their income. The objective of the measure is to extend to all types of loans the economic relief established by Royal Decree-Law 8/2020 for the most needy persons through the suspension of non-mortgage credit or loan contracts. Fourth, to contribute to alleviating the liquidity needs of households, the contingencies in which consolidated rights in pension plans can be exercised are expanded, exceptionally collecting as situations in which accumulated savings in pension plans can be accessed, situations of unemployment resulting from a temporary employment regulation file and the cessation of activity of self-employed workers or freelancers that occur as a consequence of COVID-19. Fifth, the group of potential recipients of the social electricity voucher is expanded, to which natural persons, in their habitual residence, with the right to contract the Voluntary Price for Small Consumer, who have an income equal to or lower than certain thresholds referenced to IPREM, and who prove to the reference marketer that they have ceased their professional activity as self-employed professionals or have seen their billing reduced by 75 percent on average compared to the previous semester, can exceptionally and temporarily adhere. The confinement and mobility restriction measures entail uninterrupted stay at home for most household members. Additionally, many professional activities that, under normal circumstances, are carried out outside the home, have been moved to the home. Therefore, energy supplies (electricity, natural gas, petroleum derivatives) and water supply acquire, if anything, an even more essential nature. In this context, sixth, a set of measures aimed at guaranteeing the continuity of energy and water supply for households while the state of alarm lasts is adopted. To this end, while the state of alarm is in force, the supply to domestic consumers in their habitual residence cannot be suspended for reasons other than the safety of the supply, persons, and installations, even if this possibility is stated in the supply or access contracts signed by consumers. Likewise, the period of time during which the state of alarm is in force will not count for the purposes of the deadlines of supply suspension procedures initiated prior to said period. Seventh, a response is given to the group of domestic employees, especially vulnerable in current circumstances, as they do not have the right to unemployment benefits. Therefore, an extraordinary temporary subsidy is created from which they can benefit in the event of lack of activity, reduction of working hours, or termination of the contract as a consequence of COVID-19. The amount of the subsidy will depend on the remuneration received previously, as well as on the reduction in activity suffered, requiring proof of said reduction from the employer. This subsidy is compatible with the maintenance of other activities and the maximum amount to be received will be the Minimum Wage Interprofessional (SMI) without extra payments. The health crisis motivated by COVID-19 has triggered new situations of need linked to lack of employment and has aggravated the situation in which unemployed persons were previously found. Although the state subsidy system for unemployment and also the assistance systems of the autonomous communities have served to respond to some of these situations, it is necessary to complete the scope of coverage so that new situations of need due to lack of employment generated by the current health crisis are included. A particular group particularly affected by the current situation and who may not be among those who give rise to some coverage of Social Security or any other public Administration is constituted by those workers whose temporary contract ends after the declaration of the state of alarm. Although Royal Decree-Law 9/2020 established measures so that, in case of contract suspension, the computation of temporary contracts is interrupted, this provision does not totally avoid that there are endings of temporary contracts after the declaration of the state of alarm that are not covered by the system established for unemployed persons because they were affected by the suspension or reduction of working hours established in Articles 22 and 23 of Royal Decree-Law 8/2020. The situation in which these persons are left must be attended to with exceptional measures given the difficulty of access to employment at least while the health crisis situation lasts. The subsidy for exceptional circumstances applicable to the group of temporary workers whose contract ends because it reaches its end is configured without a requirement of contribution period precisely to equate their situation as much as possible to that of persons who have been included in a temporary employment regulation file and who have been able to access, even without meeting the established requirement, the corresponding unemployment benefit. The only requirement demanded is the minimum established duration of the contract whose end has arrived, and it must be at least