Further billions may be needed to save Swiss companies
A CHF42 billion coronavirus financial aid package may not be enough to save firms from extinction, warn business leaders and economists. The state could be saddled with a bill three times higher if the crisis drags on until the end of the year.
Earlier this week, the government increased its emergency funding from CHF10 billion to CHF42 billion ($42.6 billion). Some CHF14 billion will pay the wages of employees on short-time work, with CHF20 billion being offered as guaranteed loans and more funds targeted at specific industries.
Non-essential high street shops and services have been ordered to shut down while the hospitality and tourism industries face a severe shortfall in guests in the coming months.
It is hoped that the emergency funding will keep businesses afloat for around three months, allowing them to pay their immediate bills and retain staff. “For most companies the situation is currently not too dramatic,” Hans Hess, president of the manufacturing umbrella group Swissmem, told the SonntagsZeitung newspaperExternal link.
“[But] it is certain that some customers will start to delay payments or not make them at all. There is a great danger that companies could very quickly face severe liquidity problems.”
In an interview with the NZZ am SonntagExternal link newspaper, Economics Minister Guy Parmelin would not be drawn on how much extra money might be required. “We only made public the figures that we judge we need for the current situation,” he said. “The government will do everything it needs to secure the health and income of people in the future. We have to see how the situation develops.”
The KOF Swiss Economic Institute has already called for a CHF100 billion fund, which it says will not violate Switzerland’s Debt Brake rules on keeping public debt in check. Should restrictions on businesses and borders last until the end of the year, companies will need CHF130 billion-worth of bailouts, the NZZ am Sonntag calculates.
More
More
Coronavirus fallout threatens existence of small companies
This content was published on
Many SMEs are threatened by the coronavirus crisis despite a CHF10 billion emergency fund.
This content was published on
Nemo brought the Eurovision Song Contest to Switzerland with a victory on Saturday evening in Malmö, Sweden. It is Switzerland's third victory in the history of the music contest.
Switzerland abstains from vote on Palestinian bid for full UN membership
This content was published on
On Friday, Switzerland abstained from the vote at the General Assembly on granting the Palestinians new rights at the United Nations (UN).
Protein in abdominal fat could help shape obesity treatment
This content was published on
The study analysed fat cells from different locations in the body, and found that those in the abdomen have unique properties.
North African asylum claims fall after rapid Swiss processing
This content was published on
The accelerated procedure, now out of its test phase, has resulted in a significant drop in applications from North African countries.
This content was published on
The artist's song "The Code" focuses on their journey as a nonbinary individual. It is one of the favourites to win this year's contest.
Swiss government shuts down public life amid spreading coronavirus
This content was published on
The Swiss government has declared an “extraordinary situation”, instituting a ban on all private and public events and closing gathering places.
Canton Ticino orders non-essential industry to cease production
This content was published on
Ticino is one of the cantons that has been hardest hit by the pandemic in Switzerland. Industry has been ordered to cease production unless it relates to critically important areas such as healthcare, food or agriculture. The order provisionally covers the week beginning Monday March 23. Factories that cannot simply turn off the switch straight…
This content was published on
The government has banned gatherings of more than five people, warning that CHF100 fines will be handed out to violators. Daniel Koch, head of communicable diseases at the Federal Office of Public Health, said it would take several days for the new restrictions to slow infection rates. “I am confident that we will probably see…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.