Coronavirus: Does Business Need More Help?

Coronavirus: Does Business Need More Help?

Against the backdrop of full or partial lockdowns being reintroduced in many European countries, the focus is again on the economic consequences of this measure. The European media are unanimous in the need for new assistance programs. Journalists, however, disagree about whether to create new funds for this — and who should be allocated first.

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EU must support the conjuncture

The EU countries are simply obliged to strongly stimulate the economy, — with this appeal on the pages of L’Opinion is made by Didier Saint-Georges from the company Carmignac, specializing in asset management:

“It’s a pity if Europe does not immediately rebuff the resistance of the so-called ‘thrifty’ countries, which intend to cut the economic recovery program in the amount of 750 billion euros — already too timid and clearly insufficient against the background of the second wave of the pandemic, slowing down the dynamics of economic recovery from the lockdown, which everyone hoped for. The debt burden is a very serious problem, and it cannot be solved by sacrificing the denominator in the fraction of debt / GDP. China has already realized this, and the United States, in all likelihood, will realize it very soon. Europe also has a responsibility to learn from the past.“

Quick help — and at no extra cost!

In order to help the economy, the authorities do not even need to seek additional funds, Rzeczpospolita notes:

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“Urgent help is needed. However, the point here is not that the government is obliged to hand out gifts, as it happened in the spring, and even to those who did not need them too much. We are talking about tax changes that would allow companies and enterprises to maintain financial liquidity. So, business is primarily interested in a faster VAT return. … Changes in legislation would not be an overwhelming burden on the budget. This does not require the creation of special funds that would require additional costs. Firms and organizations just need to be able to get their money back faster — for example, to pay salaries to workers and employees.“

The business will not die of hunger …

Due to the pandemic, Portugal is expected to recession of up to ten percent. There is a debate in the country about where the funds from the 2021 budget should be spent. According to Expresso, the priorities are at a glance:

“Of course, when planning a budget, it is possible and necessary to discuss whether it is worth resorting to Keynesian policies or economic incentives. But we must not forget that there are families in the country who are literally on the brink of survival. Business in any case will not die of hunger: companies and enterprises can go bankrupt or turn into a kind of walking dead — a topic that should be discussed separately, but they are just legal entities. But living people found themselves in a difficult situation and may even starve to death — if nothing is done to prevent this.“

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