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COVID-19 : Many self-employed will have already gone bankrupt when the vaccine comes, says Lorenzo Amor (ATA)

Many freelancers will be broke when the vaccine comes, which will come too late for them. This has been assured by the president of the National Federation of Associations of Self-Employed Workers (ATA), Lorenzo Love, who recalled that many freelancers will not be able to cope with this crisis.

This is what Amor warns in a tweet, in which he points out that one in five freelancers, around 600,000, will hardly overcome this crisis and is in “imminent risk” of closure, as well as that 1,600,000 freelancers have seen their activity in 2020 “above 60%”.

As of this Friday, the global number of infections in Spain rises to 1,556,730 since the beginning of the pandemic, according to official statistics. The accumulated incidence in the last 14 days per 100,000 inhabitants stands at 419, compared to 436 yesterday and 498 last Friday, with a total of 197,266 positives in the past two weeks.

React “now”

The owner of the association of self-employed ATA has already been asking the Executive for many months to react with measures to avoid further punishment of the self-employed due to the coronavirus pandemic.

“It is very good to think and work for when the European funds arrive, but, either we react with measures now, or it will be too late while freelancers, companies and jobs are destroyed”

“It is very good to think and work for when the European funds arrive, but, either we react with measures now, or it will be late while self-employed workers, companies and jobs are destroyed,” said Lorenzo Amor a few weeks ago while criticizing that Spain is preparing for another state alarm “with health measures, but no news of economic measures.”

In addition, Amor has made reference to the European Recovery Fund proposed by the European Commission (EC) and from which Spain will have access to some 140,000 million euros to face the impact of the coronavirus crisis.

Self-employed «in checkmate»

A scenario that has also alerted the Union of Professionals and Self-Employed Workers (UPTA), which warns that “the lives of thousands of small businesses are at stake if the spread of the pandemic is not stopped.” A scenario that translates into the collapse of 30% of its annual turnover that occurs with the Christmas campaign and puts 500,000 self-employed “in checkmate.”

“It is very good to think and work for when the European funds arrive, but either we react with measures now, or it will be late while freelancers, companies and jobs are destroyed”, said Lorenzo Amor

Specifically, the president of UPTA, Eduardo Abad, has added that “it will mean an economic catastrophe that will be very difficult to solve”, after the blow that the coronavirus crisis has dealt to the self-employed weighed down by the lack of aid from the Government of Pedro Sanchez. Faced with this scenario, they ask the Executive for forceful measures to contain the spread of the pandemic, since they believe that those that are being implemented are “clearly insufficient.”

From his point of view, “restrictions on mobility, perimeter closures, reducing capacity to a minimum and cutting hours in certain sectors are not giving favorable results to bend the contagion curve of this second wave.” Therefore, UPTA believes that it is preferable to “severely” tighten the restrictions to curb the pandemic in the coming weeks before it is too late and “the Christmas campaign is spoiled.”

Reduction of maximum contributions

The social communist government is taking other measures that punish the self-employed. One of the novelties that the public accounts of the social-communist coalition will collect is the reduction of the limitation of maximum contributions to pension plans, which will drop from 8,000 euros per year to 2,000 euros per year. This measure will directly harm the savings of the self-employed.

This measure will involve Hard hit for one of the sectors that has suffered the most from the impact of the covid-19 pandemic, which is the autonomous. And it is that of the total of 7.5 million people who have an individual pension plan in Spain, about 1.5 million would be self-employedThey see how the Executive has chosen to punish its main savings product.

Since Inverco emphasize that “the establishment of different contribution limits to social security systems, relegating individual systems that would have a significantly lower limit, it is discriminatory for the vast majority of the Spanish employed population. They also add that “the annual limitation of these contributions is meaningless in crisis situations such as the current one in which many workers have seen their income significantly reduced due to being in an ERTE or due to a temporary closure of their business.”