The Swiss government should scale up its efforts to help businesses overcome the coronavirus crisis, according to the director of the KOF Swiss Economic InstituteExternal link. Transport companies are also calling for more assistance.
This content was published on
3 minutes
Keystone-SDA/swissinfo.ch/ds
“If many companies are over-indebted after the crisis, they will not invest for years,” says Jan-Egbert Sturm. Then there will be no more resources for innovation and the economy will grow less strongly.
The measures taken so far to support the economy, such as shorter work hours and loans, will not be enough, he argues in an interview published on Monday by CH Media newspapersExternal link.
The government should further lighten the burden on companies by, for example, covering the costs of rents or interest payments, he says.
“This would be a kind of partial unemployment scheme for capital,” Sturm says. The state would not have to pay for everything, but a certain amount would be appropriate. Companies, their owners and lenders also have obligations, he adds.
“Anything we don’t do now will cost us more later,” Sturm warns. The unemployment rate in Switzerland, for example, could rise sharply. In addition, hardly any jobs are being created during the crisis and even afterwards companies will remain cautious at first.
According to Sturm, Switzerland can make such a non-repayable financial contribution without exceeding the CHF100 billion ($102 billion) threshold for support measures.
Public transport companies are already requesting additional subsidies from the federal government and cantonal authorities due to the heavy financial losses triggered by the coronavirus pandemic, reports the Swiss news agency Keystone-SDA.
In a letter to cabinet minister Simonetta Sommaruga, who holds the transport portfolio, the Swiss Public Transport Association bemoans losses to the tune of several hundred million francs. These losses cannot be offset by emergency aid, short-time work compensation and the suspension of investment plans, according to the letter, dated March 26, which was published in the SonntagsZeitungExternal link newspaper.
The transport association complains that most of the revenue from individual tickets is lost due to the measures taken against the pandemic. At the same time, the railways must continue to provide a basic service. In addition, season ticket holders are asking for refunds. And several transport companies are still paying full wages to employees despite shorter working hours.
The association says it is impossible to calculate the additional costs and losses associated with the situation. In normal times, almost CHF500 million a month is collected through the sale of tickets and season tickets by transport companies, according to the association’s director Ueli Stückelberger, quoted in the SonntagsZeitung. Since the imposition of semi-confinement, 60-80% of this revenue has been lost, he says.
On April 3, the Swiss government doubled its coronavirus emergency loan scheme to CHF40 billion after being flooded by requests for help by businesses. More than 76,000 agreements have been made.
External Content
Your subscription could not be saved. Please try again.
Almost finished… We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you.
More
More
Coronavirus: the situation in Switzerland
This content was published on
An overview of the latest Covid-related information in the Alpine nation.
Reports of Swiss cyber fraud almost doubled in six months
This content was published on
The head of the new Federal Office for Cybersecurity (FOC), Florian Schütz, has presented a new strategy after just over four months in office.
Ecological status of Swiss streams insufficient according to study
This content was published on
Pesticide use and obstructions of waterways have a particularly negative impact on sensitive organisms, completely absent in 70% of streams analysed.
Train line between Brig and Domodossola interrupted
This content was published on
One day after a derailment approximately 15 kilometres from the Swiss border, BLS is running buses for passengers between Preglia and Domodossola, in Italy.
Swiss football boss wants crackdown on individual hooligans
This content was published on
The head of the Swiss Football League says he prefers a harsher approach to individual hooligans rather than collective punishment measures affecting all fans.
Amherd: Council of Europe is ‘as urgently needed as ever’
This content was published on
The Swiss government emphasised on Sunday the vital role of the Strasbourg-based Council of Europe, 75 years after it was founded.
Swiss minister: Italy will back Switzerland in EU talks
This content was published on
Bern can count on the backing of Italy as it re-enters talks with the European Union on future relations, Viola Amherd says.
Student protestors at University of Lausanne continue pro-Palestine sit-in
This content was published on
Since Thursday, a hall on campus has been occupied by students calling for a boycott of Israeli academic institutions and a ceasefire in Gaza.
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.
Read more
More
Pandemic pushes more Swiss businesses to short-time working
This content was published on
In order to avoid mass lay-offs, Swiss firms are resorting to a measure that has proved its worth in times of crisis: short-time working. What is it?
This content was published on
Pressure to reopen the economy is growing, but Swiss Interior Minister Alain Berset says a quick end to coronavirus restrictions is not realistic.
Recession is unavoidable, reckon Swiss finance bosses
This content was published on
The coronavirus pandemic has fundamentally changed the economic outlook for Switzerland, with Swiss CFOs more pessimistic than ever before.
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.