MITIGATING SOCIO-ECONOMIC DAMAGE OF COVID-19
Submitted by christian on Sat, 03/14/2020 - 13:46
- Austria: Austria is setting aside € 4 billion euros in liquidity and subsidies to support the economy against the impact of the coronavirus,
- Belgium: No announced measures so far.
- Bulgaria: No measures so far.
- Croatia: No measures announced yet, but the government is assessing the impact of the virus.
- Cyprus: The government of the Republic of Cyprus is preparing a financial stimulus package to mitigate the virus’ impact on the island’s tourism and travel sectors.
- Czech Republic: No measures so far.
- Denmark: Denmark has announced a range of measures, that includes compensation for the organizers of major events that are canceled due to the virus and extending companies’ payment deadlines to settle value-added taxes. Initiatives worth € 13 billion have been announced to keep Danish companies afloat.
- Estonia: The government could propose a supplementary budget if losses are big, but this is still to be determined.
- Finland: No measures so far.
- France: The government has pledged to protect companies by letting them delay tax and social payments. Finance Minister Bruno Le Maire said that eurozone finance ministers, due to meet next week, must agree on a stimulus plan to avoid a damaging economic downturn.
- Germany: The German government signed off on a fresh financial package providing financial support for German companies. The government has also relaxed the rules on short-term contracts to make it easier for employers. The government has agreed on a package of measures to get rapid financial aid under way. Federal investments are to be increased by € 3.1 billion between 2021 and 2024. The total hike in investments totalling 12.4 billion euros will be entirely funded by 2019's budget surplus. Short-time work allowance has been extended to prevent employees from having to be laid off due to the current slump in orders. The Sunday work ban is to be relaxed to prevent supply bottlenecks. Berlin on Friday unleashed Germany's biggest economic help package worth at least € 550 billion euros to shore up its companies, offering them "unlimited" credit to keep their businesses afloat. There is no upper limit to the credit offered by (state-owned development bank) KfW. The guarantees, are just "for starters”. Berlin has enough funds in its treasury for a long battle.
- Greece: Companies affected by the shutdown will see payments of value-added tax, as well as other tax obligations and social security contributions suspended as of March 12. The government is expected to announce more measures after a Eurogroup meeting on March 16.
- Hungary: No measures announced yet.
- Ireland: Ireland has set a massive € 3 billion in a bid to protect the country’s economy. The majority of this (€ 2.4 billion) is for income support for those in self-isolation or who are diagnosed. The health service has been allocated € 435 million including to free up space in hospitals, scale up home testing and remote management of patients, and centralized procurement of protective gear.
- Italy: The Italian government passed a decree earmarking € 25 billion to tackle the economic consequences of the virus.
- Latvia: No measures so far.
- Lithuania: No specific measures announced so far.
- Luxembourg: No measures so far.
- Malta: No measures so far.
- Netherlands: The Dutch government wants to help entrepreneurs who get into financial difficulties. The government will act as a guarantor for small businesses no longer able to pay off their debts. It also opened a phone line for entrepreneurs to ask questions about the virus.
- Poland: An emergency bill has been passed and foresees the possibility of payouts to parents who have to stay at home with children. Poland’s president asked financial institutions to suspend loan payments.
- Portugal: The government has announced plans to support companies affected including by temporarily suspending employment contracts, postponing tax deadlines and offering incentives.
- Romania: No measures announced yet, but under review.
- Slovakia: No measures announced so far.
- Slovenia: Forecasters slashed their estimates of the country’s GDP for 2020 by 50 percent.
- Spain: The government has decreed that all people doing self-isolation will receive sick-leave benefits. The Spanish government has announced a series of tax breaks representing a € 14 billion injection into the economy. In addition, Prime Minister Sanchez pledged € 3.8 billion to boost health care.
- Sweden: The Swedish government propose to update the national budget to include extra money for health care costs. Companies may also see their employment contribution deferred.
- United Kingdom: The U.K. government set out a £ 12 billion package of public spending and tax cuts to mitigate the impact of coronavirus.
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