infocovid19 - SME measures per country

INFORMACIÓN ASOCIACIONES Y OTRAS ENTIDADES

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COMISIÓN EUROPEA

COVID-19 SME measures per country

Austria

SME country desk officer

Joachim Schwerin

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Starting on 16 March 2020, the Austrian government closed universities, schools and kindergardens as well as most shops, except those that address "basic needs" (food, pharmacies…). All sports and leisure facilities are closed, and gatherings of more than 5 persons are forbidden. The government also severly limited the freedom of movement, restricting movements to going to work if absolutely necessary, shopping, helping other people or taking a walk alone or with the family. These measures have in the meantime been extended until 13 April. The Bundesland Tirol is in complete lockdown, as are parts of the Bundesländer Salzburg and Vorarlberg. There are immigration restrictions in place, and the border to Italy is closed. Most air traffic has been suspended.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Due to the severe restrictions imposed by the government, the economy is hit hard at all levels. The government expects a massive deficit, which will originate both from the reduction in economic activity and support measures for the economy.

Very SME-specific corona-related impact

SME suffer from the lockdown in Tirol and the nearly equally restrictive measures in all other Bundesländer, which resulted in the closure of most shops. Tourism is hit particularly hard, as is the transport sector.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

The focus of announced support measures is on ensuring liquidity in the short term. The government announced on 15 March a € 4 billion support package for the economy ("Krisenbewältigungsfonds"), which should be available within "a few days". Part of it form guarantees for family businesses, self-employed persons and one-person-enterprises ("Härtefonds für Familienbetriebe und EPUs"), which amounts to € 100 million, to help bridge liquidity shortages. On 18 March, the government announced additional measures amounting to € 34 billion, which brings the total amount of measures taken to fight the crisis to € 38 billion. € 9 billion will be dedicated to guarantees.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Part of the Krisenbewältigungsfonds is a € 400 million support measure to subsidise working hour reductions (Kurzarbeit), accessible within 48 hours and in all sectors. As regards the much broader crisis package, € 15 billion out of the total of € 34 billion will be dedicated to emergency aid measures for yet to be defined sectors and € 10 billion to tax waivers.

Loans
Administrative burden reduction / simplification

The finance ministry has published an online form that allows enerprises to apply for taks reductions

Providing specific information and advice

Information is continously improved and updated. For instance, the economics ministry provides an overview of measures taken here: https://www.bmdw.gv.at/Themen/International/covid-19.html. There is a task force in place that coordinates all activities.

Other

Belgium

SME country desk officer

Krista de Spiegeleer

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Soft' lockdown since 18/03. Everyone is expected to stay inside. Only essential out-door movement is allowed: buy food, medicines or fuel; go to work; help vulnerable people in need. Outdoor exercise is allowed but only with members of the family or 1 close friend. Social distancing of 1,5m is obliged. Grocery stores and pharmacies stay open - others are closed. Playgrounds and recreational areas are closed. Bookstores remain open for the moment but the sector demands to be closed as well. all bars, restaurants, etc are closed. Most libraries are closed. Schools are closed but childcare is foreseen for parents in critical functions (mainly healthcare). all others are expected to telework or have special leave and have to keep their children at home.Borders are closed since 20/03 at 15.00

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

The NBB's first forecasts of economic growth under its business cycle monitor point to a slowdown in GDP growth going from 0.4% quarter on quarter in the last quarter of 2019 to 0.2% in the Q1 2020. In this context, growth in private and public consumption would continue to stabilize, while growth in business and residential investment would slow down and the contribution of net exports to GDP growth would remain negative.

Very SME-specific corona-related impact

As can be expected; SMEs suffer particularly hard from the lock-down.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

National Promotional Institution will provide credit line of 5M EUR to support SMEs. Through leverage and the intervention of banks, this intervention will mobilize a 100 million euros.On 13 March, 100 million of additional guarantees (on top of the existing 300 million) for companies suffering from the corona-virus for new working capital financing were announced.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Income replacement for small enteprises/shops of 4.000€ (full closure) or 2.000€ (partial closure) per enterprise, temporary unemployment for technical reasons or force majeure for many employees, postponement and reduction of social security contribution. Some support from within certain sectors such as cafes/bars/restaurants: large breweries will charge no rent on own buildings during the crisis. Postponement of payment of road tax and real estate taxes.

Loans

PMV (Participatiemaatschappij Vlaanderen) is providing a whole range of measures in support of enterprises in general and those companies in which they participate in general, eg: additionnal guarantees, postponement of repaying loans)

Administrative burden reduction / simplification

New options for firms wishing to have recourse to partial employmentSuspension of penalties for suppliers failing to fulfil government contractsAn optional deferral of VAT payment, social contributions and corporate taxReduced social contributions for self-employed conditional on proving a decrease in revenue due to the outbreakCancellation or deferral of social contributions and taxes for the self-employedEquivalent to unemployment benefits for self-employment who need to cease activities temporarily

Providing specific information and advice

Information is continously improved and updated. Several instances provide information on the measures they take. Examples:https://economie.fgov.be/nl/themas/ondernemingen/coronavirus/informatie-voor-ondernemingen/economische-verliezen-beperken/coronavirus-tweede-luik-vanhttps://www.pmv.eu/nl/financieel-arsenaal-van-pmv-ondersteunt-bedrijven-tegen-de-impact-van-het-coronavirusVlaams Gewest (https://www.vlaio.be/nl/begeleiding-advies/moeilijkhedencoronavirus/specifieke-maatregelen-mbt-het-coronavirus/coronavirus)Brussels Hoofdstedelijk Gewest (https://1819.brussels/)Waals Gewest (https://www.1890.be/)

Other

Bulgaria

SME country desk officer

Ivan Marinov

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Shut down of all restaurants, shopping malls, bars and night clubs. Only pharmacies and groceries shops will remain open. Shut down of all schools, kindergartens, nurseries and all kind of public or private group education activities.Ban for all kinds of mass events, including sports, cultural, entertaining and scientific events (cinemas, theaters, concerts, museums, conferences, symposia, sports and SPA centers, gyms, etc.)Suspension of all children’s and women’s medical consultations, preventive examinations and vaccinations, scheduled operations, including the transplantation of organs from living and deceased donors, as well as the patients’ visits in all the hospitals;All employers, depending on the specifics and capabilities, must introduce teleworking for their employees. Where this is not possible, employers shall arrange for enhanced anti-epidemic measures to be taken in the workplace, including: filter, disinfection and ventilation, coaching for personal hygiene of the staff and prevent employees or outsiders with manifestations of acute infectious diseases;Flights to and from Italy and Spain are stopped as of midnight on 17 MarchLand border crossings remain open to the extent that our neighbouring countries have not closed themMandatory 14 quarantine applies for people coming back from China, South Korea, Iran, Italy and Spain. The list is to be updated soon.Crisis staff has recommended further restrictions to public life, still to be confirmed by the government.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

The Vienna Economic Institute lowered Bulgaria's GDP forecast to 1.4% down from its previous 2.8% projection. According to the Finance Minister, the reduction in budget revenue is estimated at some BGN 3 billion (2.5% of GDP) but the figure is likely to swell. Economy analysts at Raiffeisen Bank International (RBI) have revised sharply downwards the 2020 GDP growth outlook and project a 3.9% economic downturn in Bulgaria this year, according to the group's annual report. Expectations diverge dramatically with data from November, when estimates were for a 2.5% growth in Bulgaria's GDP.Still, analysts expect the shock to be short-lived and by 2021 most economies should return to positive development. For Bulgaria, the projection is for a 3.3% GDP growth next year.The number of unemployed people, registered per day, jumped from 750 to 1301 on Friday, 20 March. At the moment, social assistance is provided to over 200,000 senior citizens. Businesses are pushing for the creation of a crisis headquarters to overcome the damage to the economy.

Very SME-specific corona-related impact

In tourism, losses are projected to reach BGN 646 mn (EUR 330 mn) for March-July 2020. Other sectors are also reporting difficulties due to interruption of activity – restaurants and fast food, real estate, transport, courier services, machine building, retail (apart from food). Employers may, without employees’ consent, introduce work from home or send employees in paid annual leave for half of the entitled period, which in most cases means 10 days.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

EUR 500 mn liquidity support after the capital increase of the Bulgarian Development Bank providing portfolio guarantees to the commercial banks to maintain the access to finance of SMEs.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Liquidity support will be provided by the state-owned Bulgarian Development Bank for cash-strapped businessesTo prevent job losses, the government said it will cover 60% of the wages for one month of employees in companies with proven impact from the epidemic. On 19 March, the Bulgarian National Bank, announced a package of measures of BGN 9.3 bn (EUR 4.76bn), which aim at maintaining the resilience of the banking system and enhancing its flexibility to reduce the negative effects of the constraints on citizens and businesses.

Loans

The consequences of late payment of obligations to private entities, including interest and penalties for late payment, as well as non-monetary consequences, such as early demand for payment, contract termination and seizure of property, are temporarily abolished.

Administrative burden reduction / simplification

The deadline for annual financial statements will be postponed from end-March to end-June.The deadline for annual tax declarations and tax payments could also be postponed from end-April to a later date. Тhe deadlines for payment of electricity bills is extended from 10 to 20 days, which can be changed by order of the Minister of Energy. Public procurement procedures will not be required for the purchase of medical supplies and personal protective equipment, medical and laboratory equipment, as well as for the incineration of medical waste.

Providing specific information and advice
Other

BGN 20mn (EUR 10mn) from Operational programme ‘Human Resource Development’ will be used to give a monthly bonus of BGN 1000 (EUR 500) a month to all medical staff dealing with coronavirusAdditional BGN 20 million will be given to municipalities to support social services for the sick and elderly living alone.

Croatia

SME country desk officer

Drazen Budimir

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Due to the retsrictions imposed by the government, the economy will be hit hard at all levels, especially in tourism.The governments expects a big deficit, which will origintate both from the reduction in economic activity and support measures for the economy.

Very SME-specific corona-related impact

SMEs in tourism expect siginificant impact

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

Croatian Small Business, Innovation and Investment Agency (HAMAG-BICRO)Counter- guarantee at a rate of 50% on principal for working capital of tourism loans (interest rate 0.5% -0.75% -1.0%).

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)
Loans

Croatian Small Business, Innovation and Investment Agency (HAMAG-BICRO)

Moratorium on all instalments of ESIF Micro and Small Loans and Micro and Small Rural Development Loans by 31 December 2020 and the extended term / repayment period of the guaranteed loans.
Establishment of a new financial instrument Micro Rural Development Loan for Working Capital (faster processing, grace period, lower interest rate).

Corona loans, i.e. a new financial instrument "COVID-19 loans" will be established in the amount of HRK 380 million, which will serve small and medium-sized enterprises for working capital, announced the Minister of Economy, Entrepreneurship and Crafts, to be implemented by HAMAG-BICRO

Administrative burden reduction / simplification

Postponement of certain tax paymentsThe measures announced by Government include the postponement of certain tax payments. No interest or penalties will be charged on tax payments that are postponed in terms of this measure.

Providing specific information and advice
Other

Cyprus

SME country desk officer

Hilda Juhasz

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

15.3.: CY is ina state of emergency. Anyone entering the Republic of Cyprus needs to be in possession of a certificate that they have been tested for COVID-19. Even in this case, everyone entering the Republic will be placed in quarantine for 14 days at government-administered facilities. The above measures will be in effect until 30 April.
The above measures will also apply to the crossing points between the Republic of Cyprus and the Non-Government-Controlled Areas, except of humanitarian reasons, for which the approval of the Ministry of Health will be needed. Private businesses, including churches, shopping malls, restaurants (except delivery establishments), cafeterias, cinemas, theatres, libraries hotels are suspended. Supermarkets, bakeries, pharmacies and petrol stations will remain open. Schools are closed.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact
Very SME-specific corona-related impact

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees
Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)
- € 450 million will be dedicated to the support of SMEs and private businesses (this has a fiscal impact).
- € 250 million will be dedicated to strengthening liquidity (this does not have a fiscal impact, i.e. it is not increasing the government's deficit) via extension of VAT tax payment until end April 2020, provided the amount due will be paid by 10 November. Plus reduction of the standard VAT rate from 19% to 17% for two months, and of the reduced rate (from 9% to 7%) for 3 ½ months
- A € 10m Small Business Support Plan for businesses that employ up to 5 people , provided they retain their employees at work and have reduced their turnover by more than 25%. The Plan provides for a subsidy of 70% of employee salaries.
- € 110 million for those businesses that currently decided to suspend their operations and for those businesses that continue to operate and suffer a turnover loss of more than 25%. A Business Suspension Plan is in place to avoid layoffs and at the same time affected employees will receive an unemployment allowance for as long as the company is suspended.
- Additional resources of € 11 million for the tourism sector for the period June-September 2020.
- Suggestion of the government to Cyprus Energy Regulatory Authority, for the reduction of electricity prices by 10% for 3 months.
- Freezing of foreclosure process by the KEDIPES - Cyprus Asset Management Company for three months.
Loans

The ECB has already considered measures to support bank lending. Under the new measures, Cypriot financial institutions will be able to obtain liquidity from the Eurosystem on substantially favorable terms. The measures decided by the ECB concern, inter alia, the release of capital stocks, which for the Cyprus systemic banks are estimated by the CBC in excess of € 1.3 billion. In addition, the Central Bank of Cyprus is considering further local measures which will be announced by the Governor of the Central Bank shortly thereafter.

Administrative burden reduction / simplification

Suspension of the requirement to retain guarantees under public and private contracts for the supply of services or products that will be delayed by the crisis.

Providing specific information and advice
Other

Czechia

SME country desk officer

Katerina Nejdlova

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

The CZ is in quarantine. People allowed to go to work and do necessary shopping, or take of family member. All type of schools are closed. Some exceptions for kindergardens. All shops closed with exception of groceries and pharmacies. After initial critical lack of protection material (masks, respirators, etc.) first deliveries from China arrived this week. Still not enough, the Government spent alreadz about 3 bill CZK on that. All travels from and to CZ not allowed except for crosborder workers (max 100 km from the boarder). Crossboarder workers seem to be a high risk, ongoing dabate about banning crossboarder work. State of emergency anabling the goverment to take sertain decision without approval from the partialment as from 12/3 for £0 days.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

The CZK:EUR exchange rate dropped. From 9/3 the CZK lost 9,8% to EUR

Very SME-specific corona-related impact

Kurzarbeit concept approved by the goverment. (government to contribute to part of salaries in companies affected by COVID-19)

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees
Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)
Loans

COVID loan programme to facilitate access to operational finance for SMEs. Interest-free loans with postponement of instalments for SMEs affected by coronavirus (whose economic Activities are limited due to the occurrence of coronavirus infection and related preventive measures) provided by Czech Moravian Guarantee and Development Bank. Loans in amount 500k up to 15M CZK, maturity up to 2years, postponement of instalments up to 12 months. Applications from 16-3-2020. Demand highly exceeds initial expectation. about 1 bill CZK reserved.

Administrative burden reduction / simplification

The liberation tax package – flat waiver of late payment of personal and corporate income tax return until 1 July 2020(due 1 April). All taxpayers allowed to file their income tax and pay this tax without penalty 3 months later without having to prove the reasons related to coronavirus.3rd and 4th wave of electronic sales records postponed for 3 months (initial start planned for 1-5-2020)

Providing specific information and advice
Other

New indemnity for self employed (currently available only for employees with kids below 12 for 10 days) to take care for kids below 13 y.o. For each day of schools closed, they will be entitled to about 17 EUR per day. In case of employees, eligibility period extended from 10 days to total length of school closure.

Denmark

SME country desk officer

Artur Romanek

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Borders, schools and public administration closed.As from 18.3, Danes should not meet in groups more than 10 people as maximum, preferably also to be avoided in private gatherings. This also implies a closure of all pubs, bars restaurants, most main shopping centres and department stores.Access to groceries and pharmacies should be unrestricted.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact
Very SME-specific corona-related impact

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

On 12 March, the government announced a guarantee scheme for small-to-medium businesses to help then bridge the two-and-a-half week lockdown. The government will allocate 1bn Danish kroner (USD 150m) to guarantee up to 70 percent of bank loans to help companies keep solvent.
In addition, the limits for publically guaranteed loan schemes available to both large and small and medium-sized companies are raised, to DKK 25 billion (EUR 3.3 billion) and DKK 17.5 billion (EUR 2.3 billion) respectively. To help the travel sector, the State will add DKK 1.25 billion (EUR 165 million) to the Guarantee Fund for Travellers.
The government intends to (18.3) launch a guarantee initiative for businesses that have lost 50% of business due to the COVID-19 outbreak. They can get a government guarantee for 70% of new borrowing. For SMEs, it seems that it will be free and the government expects a credit loss of DKK1bn. For larger businesses, it will be at ‘market price’.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Scheme where government pays up to 90% of wages for 3 months for workers who are temporarily redundant under certain conditions.
Government payment for sick leave from day 1.
Self-employed and those employed in small businesses with fewer than 10 employees facing a loss of earnings of 30% or more will receive 75% compensation, up to a maximum of DKK 23 000 (EUR 3 000) per month in direct financial support. Where the self-employed or small business owner’s partner is also employed in the business, the compensation threshold will now be DKK 46 000 (EUR 6 000), as opposed to the DKK 34 000 (EUR 4 500) proposed by the Government. The compensation is subject to tax. The scheme is applicable from 9 March to 9 June and will be notified to the European Commission as state aid.
Businesses able to demonstrate a loss of earnings of more than 40% since the beginning of the COVID19 outbreak will be eligible for direct compensation in respect of between 25% (in case of 40-60% loss of earnings) and 80% (in case of 80-100% loss of earnings) of their fixed costs, including rent. Businesses that have been ordered to close will receive 100% compensation of fixed costs. The scheme is applicable from 9 March to 9 June and will be notified to the European Commission as state aid.

Loans

Danmarks Nationalbanken has announced an extraordinary lending facility, allowing banks to borrow at -0.5% instead of the regular lending rate of 0%, which is set to put a cap on lending rates.
Danske Bank (commercial bank) will allow businesses to defer payments; the charging of negative interest will be suspended for the rest of the year and SMEs will receive an offer for credit card payments to be charged only after three months.
A total of DKK 1.25 billion (EUR 165 million) in additional export credits will be made available to small and medium-sized export companies.

Administrative burden reduction / simplification

Extend deadlines for payroll taxes and VAT for up to 4 months.
Public procurement:

advance payment of procured products and services up to DKK 1 Mia
no PP sanctions imposed, if the sanctionable action can be referred to Corona.

The Minister of Finance will enter into dialogue with the Association of Danish municipalities and Association of Danish regions as to see if their members also could introduce corresponding changes of procuedures

Providing specific information and advice
Other

The government is about to negotiate budgetary relaxation possibilities for municipalities and regional authorities.
The Danish Export Credit Fund (EKF), a state agency which secures payments of exports of goods and services out for Denmark, will increase its liquidity for in particular SME’s. Some DKK 1,25 Mia in increase guarantees will assist some 250 SME in continuous export business.
Cash benefits from the unemployment scheme will change due to the difficulty in finding jobs under the current circumstances. Those that have since 9/3 have used up all cash benefits may re-admitted into the unemployment scheme before 9/6 and received another 3 months of cash benefits.

Estonia

SME country desk officer

Dana Adriana Puia Morel

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

The government has declared emergency situation on Mar 12, until May 1. All public gatherings are prohibited, schools are closed Estonia has started to test for Coronavirus in the early stages of its propagation. There are so far 283 confirmed cases, but the rate of increase is relatively stable, it is not accelerating. The government has restricted crossing of the Schengen internal and external borders.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Government estimated that the spread of the virus and the prevention measures will have a very significant impact on the economy. The planned package of measures will amount to at least 2 Billion EURO, was approved on Mar 19.

Very SME-specific corona-related impact

Almost all companies in Estonia are SMEs.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

Through KredEx Foundation measures: Loan collateral for companies amounting to 1 billion Euro for bank loans already issued in order to allow for repayment schedule adjustments

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Estonian Unemployment Insurance Fund will cover for wage reduction , amounting to 250 million Euro, covering the period March to May. The state will compensate for the first 3 days of sick leave. Rural companies can apply to the Rural Development Foundation for guarantees (up to 50 million Euro), business loans (up to 100million Euro) and land capital financing (up to 50 million Euro)

Loans

KredEx Foundation business loan amounting to 500 million to overcome liquidity problems caused by coronavirus ; - KredEx Foundation investment loan amounting to 50 Million Euro for taking advantage of business opportunities created by the coronavirus

Administrative burden reduction / simplification
Providing specific information and advice
Other

Self employed workers are subject to an advance social tax support measure. Payments into Pillar II of the pension fund are temporarily suspended. State compensates for the direct costs of cultural and sporting events cancelled due to Coronavirus, up to 3 million Euro.

Finland

SME country desk officer

Maarit Nyman

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

On 16/3, the Government declared a state of emergency in Finland over the coronavirus outbreak and decided on measures to slow down the spreading of coronavirus and to protect risk groups. The decisions will remain in force until 13/4 2020. The measures decided by the Government will be enforced in accordance with the Emergency Powers Act, Communicable Diseases Act and other relevant legislation. On 20/3 the Government announced a support package targeted, among other things, to companies.
Schools and universities are closed as well as all national and municipal museums, theatres, sports facilities, youth centres, etc. Public gatherings are limited to no more than ten persons, and it is recommend to avoid spending unnecessary time in public places. The capacity of healthcare and social welfare services will be increased.
Persons over 70 years of age must refrain from contact with other persons to the extent possible (quarantine-like conditions). Passenger transport to Finland will be suspended, with the exception of the return of Finnish citizens and persons residing in Finland. Finnish citizens and persons residing in Finland must not travel abroad.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

The Finnish Institute of Economic Research (Etla) estimates that due to the coronavirus pandemic, Finland's GDP will fall by 1-5 per cent this year.
Etla has prepared three different scenarios for the economic impact of a pandemic - the weakest right now most likely: Finland's GDP will contract by 5 per cent this year. The economy would contract by almost a tenth in the second quarter, but would start to grow thereafter.

Very SME-specific corona-related impact

SMEs in the HORECA sector are severely impacted.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

Finnvera’s (Finnish state-owned financing company) financing capacity is increased by €10 bn to a total of €12 bn.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

ELY centres (regional Centres for economic development, transport and the environment working under the corresponding line ministries) will allocate €50 million for SMEs, in particular in the service sector. €150 million will be made available for companies including in the creative sector, tourism and supply chains through Business Finland network.

Loans

Finnvera’s (Finnish state-owned financing company) financing capacity is increased by €10 bn to a total of €12 bn.

Administrative burden reduction / simplification

Tax and pension contribution paymets can be postponed. Finnvera has shorten the application processing time (3-4 days). More resources are made available for advice and support. Entrepreneurs, including sole traders and free lancers, will be eligible for unemployment benefits.

Providing specific information and advice

€500 000 will be dedicated for counselling and support services for entrepreneurs.

Other

Pension funds will invest in up to € 1 billion in commercial papers.A crisis working group on company financing was set up to look into financing-related issues at national/European/ and global level. The Under Secretary of State, Finnish SME Envoy is chairing the group.

The meetings of the WG are held in 3 “formats”: 1) among Government bodies 2) between Government bodies and Finance Finland (FFI) which represents the interests of the Finnish financial sector (banks, life and non-life insurers, employee pension companies, finance houses, fund management companies and securities dealers operating in Finland) and 3) between Government bodies, Finance Finland and banks. The group is officially set up but works in a pragmatic, non-procedural and informal way to make quick decisions. It contributes to quick preparation of initiatives, checking the feasibility and committing different parties to the initiatives. Senior level participation from all organisations involved.
The Financial Supervisory Authority (FIN-FSA), in cooperation with European and Finnish authorities, has launched a number of measures to promote the provision of credit and to minimise disruption to the market. On 17 March, FIN-FSA decided to lower Finnish credit institutions’ capital requirements. The reduction is implemented by removing the systemic risk buffer and by adjusting credit institution-specific requirements so that the structural buffer requirements of all credit institutions will fall by 1 percentage point, all in all.

The decision of the FIN-FSA will increase the lending capacity of the Finnish banks by around €52 billion. This, together with the decisions of the macroprudential supervisors of other countries, is estimated to increase the imputed lending capacity of credit institutions to Finnish businesses and households by €30 billion. The actual effects of the decisions will depend on the measures taken by the credit institutions themselves.

France

SME country desk officer

Jean-Marie Avezou

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

From 17 March, France is enforcing a mandatory lockdown for 2 weeks in the face of worsening coronavirus epidemic. Only shopping for food and basic necessities is open. Only supermarkets, bakeries and pharmacies will remain open. Teleworking from home is a golden rule (exceptions are only allowed for essential professional activities). French borders have been closed with the entry of all Foreign nationals prohibited. "Essential" cross-border travel is however allowed for citizens who have valid reasons.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

It is expected that budget deficit will raise 3,9% of GDP and public debt will go beyond 100%. Growth should decrease by 1 percentage point.

Very SME-specific corona-related impact

SMEs in the HORECA sector will be severely impacted. Tourism sector, relying on many SMEs, will be hit hard by the crisis.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

Finance Minister Bruno Le Maire has presented an emergency budget, to be approved in the week of 23 March, that will include 45 billion euros of spending plus 300 billion euros of loan guarantees. A scheme to provide State guarantees to banks on portfolios of new loans for all types of companies is established. This is direct aid to the companies that will enable banks to quickly provide liquidity to any company that needs it.
The French public investment bank Bpifrance will provide State guarantees on commercial loans and credit lines, respectively, for enterprises with up to 5,000 employees.Guarantees on loans made to SMEs are increased to 90% of the amount borrowed (from 70%).

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Encouraging firms to have recourse to temporary lay-offs (by shortening procedures and with higher public coverage of firms’ costs)
On 12 March, the Government announced that it would reimburse 100% of partial employment compensations (up from 70% previously). A Fonds de Solidarité is being created to support microenterprises with cash flow problems (special help of € 1500 available for SMEs having a tunrover of less than 1 M EUR). In addition, the coverage on state guarantees was increased from 70% to 90% for SMEs.

Loans

A special fund of 300 BN EUR has been set up to guarantee cash-flow loans to continue activity and preserve jobs. A mobilisation of credit mediation to help SMEs wishing to renegotiate credit terms is put in place.

Administrative burden reduction / simplification

Payment of social or fiscal contributions could be delayed (up to 3 months) without any penalty. For the smallest companies facing difficulties, payment of rents or water, gaz or electricty invoices can be delayed. A deferral of tax payment will be put in place.

Providing specific information and advice

Chambers of Commerce and industry (CCI) have been appointed as central contact points for all companies looking for help and information.

Other

Germany

SME country desk officer

Ludger Odenthal

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

As in most other MS , only shops supplying essential goods remain open. Major car companies(BMW, Porsche, etc) have (as per 18/3) announce complete stop of production for the next 1-2 months with serious knock-on effects on SMEs in the supply chain.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

A new survey by DIHK among over 10 000 German companies (85% of which had less than 200 employees), released on 9 March, indicated that almost half of respondents expected a negative impact on their business in 2020, with almost one third expecting a decline in turnover of more than 10%. Repercussions of the coronavirus on the German economy are already noticeable. Trade fairs, events and travel plans are cancelled, employees are put under quarantine. Foreign trade, especially with China, has stalled for several weeks now. Almost every second company in Germany expects declining revenue in 2020 as a direct result of the coronavirus. In addition, companies are already noticing disruptions in their business processes. 70 per cent of companies have introduced protective measures for their employees in connection to the coronavirus outbreak. This primarily concerns the procurement of medicine and hygiene materials as well as instructions on appropriate hygiene measures. 60 per cent of companies feel a need for information about continued remuneration. 45 per cent of companies are unsure about the appropriate handling of infected employees and suspected cases of corona within their company. From the companies' point of view, concrete immediate economic policy measures should first and foremost aim at employment and liquidity protection.

Very SME-specific corona-related impact

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

Companies’ liquidity will be protected via new measures of unlimited scope. Existing liquidity assistance schemes, such as KfW and ERP loans, will be expanded and made available to more companies.
The government has also launched an Economy stabilisation fund (Wirtschaftsstabilisierungsfonds) . It is suppose to ringfence businesses seen as of critical importance for the German economy as a whole: The fund comprises support to the tune of €600 billion, €400 of which for liqudity guarantees, €100 for direct equity participation in businesses of strategic importance for the German economy (incl. critical SMEs) and €100 for re-fimancing by the KfW)

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

The government has referred SMEs to instruments already available to help companies cover short-term liquidity requirements, including working capital loans and guarantees. Access to short-term work arrangements (Kurzarbeit) was expanded in order to avert a sharp rise in unemployment. In practice, firms can apply for the funds when just 10% of their workers are affected by a work stoppage, against one-third previously. In addition, on 10 March, the federal cabinet decided to extend the short-time work allowance to prevent employees from having to be laid off due to the current slump in orders. Self-employed will be supported thru one-off grants: self employeed with up to 5 employees are entitled to €9000 in the first three months while those with up to 10 (full-time equivalents) are entitled to €15000 (under specific circumstances it can be extended by another two months)

Loans

Germany authorized its state bank (a bank run by the government, but not a central bank), KfW, to lend out as much as $610 billion to companies to cushion the effects of the coronavirus

Administrative burden reduction / simplification

Conflict mediation between SMEs and clients/suppliersA suspension of penalties for payment delays in government contractsA mobilisation of credit mediation to help SMEs wishing to renegotiate credit terms Besides, the country’s labour ministry plans to relax the Sunday work ban to prevent supply bottlenecks.

Providing specific information and advice

There is no overview available of the information activities at the various levels of the administration. However, the mentioned DIHK survey clarly stakes out the priority needs of businesses in this regard: Companies are in need of information across a wide range of topics given the particular circumstances and everchanging situation. 60 per cent of companies need more information on how to claim wage reimbursement in case of operational consequences due to corona. According to the Infection Protection Act the public health department can put potentially infected employees under quarantine as a precautionary measure. Whilst affected employees are legally entitled to their net salary, employers are eligible to claim reimbursement within three months. In light of corona currently spreading in Germany, it is to be expected that numerous inquiries will reach the authorities regarding individual cases. In addition, 45 per cent of the companies have questions about how to deal with already or possibly infected employees in the company. Furthermore, there is a need for information on the use of short-time allowance (28.8 per cent), further support offers (28.9 per cent) and pandemic plans (23.9 per cent). In many cases it is unclear how to deal with the non-compliance with contracts (25.8 per cent), e.g. when trade fairs and events are cancelled, or with contract clauses in the event of "force majeure" (16.3 per cent).

Other

Companies’ liquidity will be improved by means of tax measures. It will be easier to defer tax payments and reduce the amount of advance payments. There will be no for eclosures or late payment fines in cases related to the effects of coronavirus. In addition, the Bundesländer have initiated sizeable support packages complementing the federal initiatives as regards liquidity supports, grants, including direct not means-tested subsidies as well as tax deferals.

Greece

SME country desk officer

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact
Very SME-specific corona-related impact

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees
Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)
Loans

Furthermore, a new EUR 500 million scheme in collaboration with the European Investment Fund (EIF) could address the financing gap faced by SMEs, which is expected to grow in the context of the coronavirus

Administrative burden reduction / simplification

On 9 March, the Greek government announced financial relief measures for companies in areas hit by the coronavirus to safeguard jobs and boost liquidity.68 The measures include a deferral of value-added tax (VAT) payments and social security payments. Companies operating in areas affected by the outbreak and which shut down for at least 10 days will get a four-month extension to pay VAT due at the end of March. The deadline for social security payments will be similarly extended. The Government will also encourage employers to consider work-from-home initiatives and adjust shifts to help contain the outbreak.

Providing specific information and advice
Other

Hungary

SME country desk officer

Janos Schmied

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Closure of the borders for passenger transport, only Hungarian citizens may enter Hungary, closure of airpoirts, public transport on reduced frequency in bigger cities, no public events, no sport events, schools, universities closed, no bars, no movies, only grocery shops, pharmacies, drugstores operate with normal schedule, other shops including horeca-units close at 15h. The government ordered sanitary equipments, devices, masks worth 3 billion HUF from China, expected to arrive until the end of week (21-22 March)

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

The government expects a wave of lay-offs, expected number of the unemplyed between 100.000 up to 500.000, GDP for this year in a forecast range of -1,5% to +1,5%, average forecast is a "positive" 0, as a longlasting impact the government is prepared to localise the production of safety materials, equipments in future. New budget will need to be set up - the payment moratorium's impact is estimated at 3000 billion HUF, that amount should be rebudgeted, a special taskforce is set up to coordinate the activities. The EUR:HUF exchange rate went from 330 HUF/EUR to 360 HUF/EUR which is seen as critical especially for hospitals whose supplies are dependent with 80% on foreign supplies.

Very SME-specific corona-related impact

The loan repayment moratorium impacts business loans worth 10.000 billion HUF. SMES in the following sectors are mainly impacted: HORECA, torusim, entertaining industry, sport industry, cultural services, passenger transport. The government expects with the closure of up to 1.000 businesses in the tourism industry. One-third of the businesses in Budapest switched to telework, 19% of the businesses sent their staff into vacation without payment, only 12% ensure further salary payment while on leave

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees
Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Businesses in the sectors seriously impacted by the crisis (HORECA, tourism, entertaining industry, sport industry, cultural services, passenger transport) are exempted from paying the employers' social security contribution until the end of the year. Small businesses under the siplified tax scheme "KATA" are exempted from paying their tax lump payments until the end of June. Businesses in the tourism sector are exempted from paying the state tax/contribution on tourism development until the end of June.

Loans
Administrative burden reduction / simplification

Grocery stores and HORECA businesses are alloawed to start home delivery service without prior registration/authorization. Business set-up for home delivery can be done without prior authorization and registry if the new business can conclude contracts with HORECA and/or grocery businesses. Businesses can also be set up without prior authorization or registry for long distance selling of any goods except for product promotions/presentations. Tendering activities for COVID-related products/services may differ from standard tendering procedures.

Providing specific information and advice

The government provides specific information on its social media channels on the measures taken.

Other

Commercial banks can use their loans to large enterprises as collaterals, the National Bank applies a haircut of 30% - as much as 5% of the annual GDP will be mobilized

Ireland

SME country desk officer

Michela Lafranconi

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

906 cases notified on 22 March, of which 30% hospitalised and 22% are healthcare workers.Dublin has the highest number of cases (more than 50% of all cases) followed by Cork. At least one case reported in each county.4 COVID-19 related deaths in Ireland

Contact tracing and social distancing measures (2 mt distance, no mass gatherings 100 people indoors, 500 people outdoors).
Public transport will continue and shops will continue to remain open
Museums, galleries and tourism sites closed.
Pubs advised to close until 29 March
Schools, Creches, Childcare Facilities and Higher Education Institutions closed until 29 March.
EMPLOYERS and employees should prepare to work from home, where possible.

Employers asked to increase awareness about and communication to staff about COVID-19 and to introduce policies to reduce social contact (flexible hours, staggering start times and break times, teleworking arrangements, using email and teleconferencing, reduce face-to-face meetings and gatherings).
If an employee develops ‘flu-like symptoms they should immediately be separated from others, instructed on respiratory etiquette and sent home (not using public transport, if possible).

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Even if shops can stay open, many are closing down. A call for help comes from the retail sector.Fast food chain Supermac’s will close its 108 restaurants across Ireland by 7pm on Thursday, adding to the closures of McDonald’s, Subway, Nando’s and Starbucks coffee shops.Airbnb hosts turn to long-term rentals and self-isolation units as bookings cancelled en masse.Bank of Ireland to temporarily shut 101 branches (40%) as Covid-19 spreads.Many workers have operated from home up to now (and are likely to be completely unaware that they are entitled to avail of e-worker relief, which entails claiming tax relief against the cost of lighting, heat and even broadband).

Very SME-specific corona-related impact

Reactions from SME associations:SMALL FIRMS Association: appreciate gov response, but calls for additional supports:

Ensure that all announced available Government supports are easy to access and that no unintended regulatory issues arise.   
Introduce a moratorium on payments which business makes to the State.   
Reduce the lower rate of employer PRSI.   
Reintroduction of the 9% VAT rate for qualifying sectors for the remainder of 2020
a small business recovery programme, including, fiscal stimulus measures, substantial tax deferral and a National SME and Entrepreneurship policy to get the small business community back to business

IBEC: interesting document that provides comparisons with measures taken by other countries.Calls for income support measures up to €4 billion of funding (1.2% of GDP) which would fund replacement rates of at least 70% of net wages lost, for 20 weeks, for up to 500,000 workers. Other countries have been much more extensive in terms of State credit guarantees, with many countries putting measures in place which would, if necessary, reach 10% of GDP and greater.https://www.ibec.ie/connect-and-learn/media/2020/03/20/ibec-launches-new-report-on-covid-19-measures-and-priorities

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

The purpose of the SME CREDIT GUARANTEE SCHEME is to encourage additional lending to SMEs by offering a partial Government guarantee (currently 80%) to banks against losses on qualifying loans to eligible SMEs. The Credit Guarantee Scheme supports loans up to €1 million for periods of up to 7 years to SMEs and small mid-caps (up to 500 employees). Primary agriculture, horticulture and fisheries are excluded from the scope of the scheme in the light of particular restrictions under the De Minimis State Aid rules. The Scheme is targeted towards companies who are unable to access credit because of three distinct barriers to lending;

Inadequate collateral
Novel business market, sector or technology which is perceived by lenders as higher risk under current credit risk evaluation practices
Need for refinancing caused by the exit of an SMEs lender from the Irish market

Refinancing of existing debt and property-related activities will be excluded from the Scheme.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

FINANCE IN FOCUS GRANT of €7,200 will be available to Enterprise Ireland and Údarás na Gaeltachta clients that want to access consultancy support to undertake immediate finance reviews.
Local Enterprise Offices are providing VOUCHERS worth between EUR 2 500 and EUR 10 000 with match funding for innovation, productivity and business continuity preparedness. (Full details of this support will be finalised shortly, therefore I understand it is not yet available)

Loans

NEW MICROFINANCE IRELAND COVID-19 LOAN: microenterprises can access this type of loan, which includes an option for a moratorium on interest and repayments for the first six months. Minister for Business, Enterprise and Innovation urged microenterprises - sole traders and limited companies with fewer than 10 employees - that are impacted by COVID-19 to consider applying for the loan to ease their cashflow problems. Firms can borrow up to €50,000 for a maximum three-year term, but there are no hidden costs and no penalties for early repayment. Businesses can opt for the first six months to pay 0% interest and make no repayments (the loan would then be repaid over the remaining 30 months of the 36-month period).Loans are available at an interest rate of between 6.8% and 7.8%. Eligibility criteria: A minimum of 15% of actual or projected turnover or profit in the business is negatively impacted by COVID-19, the business is a micro-enterprise,the business is having difficulty in accessing finance from Banks and/or other commercial lending providers.https://microfinanceireland.ie/loan-packages/covid19/
€200m SBCI COVID-19 Working Capital Scheme (not yet available, but companies can start applying for eligibility): for "viable" SMEs and small mid-caps, loans of €25,000 up to €1.5 million (for loans of up to €500k no security is required), fixed interest rate of max 4%, max duration 3 years.
€200m Package for Enterprise Supports including a Rescue and Restructuring Scheme is available through Enterprise Ireland for vulnerable but viable firms that need to restructure or transform their business.

Administrative burden reduction / simplification

Revenue published advice for SMEs:

application of interests on late payments is suspended for January/February VAT and Feb/March PAYE liabilities
all debt enforcement activity is suspended until further notice
current tax clearance status will remain in place for all businesses over the coming months
businesses experiencing temporary cash flow difficulties should continue to send in tax returns on time

Further instructions are foreseen for subcontractors.
Critical pharma and medicines will be granted green routing through customs.
https://www.revenue.ie/en/corporate/press-office/press-releases/2020/pr-130320-revenue-announce-measures-to-assist-smes-experiencing-cashflow-difficulties-arising-from-covid-19.aspx
Businesses around the country contribute €1.5 billion in COMMERCIAL RATES TO LOCAL AUTHORITIES every year. This is a critical source of income, making up between 16% and 53% of total funding for essential local services at individual local authority level, averaging 33% nationally.Local authorities should agree to defer rates payments due from the most immediately impacted businesses - primarily in the retail, hospitality, leisure and childcare sectors, for three months, until end-May. This measure will be implemented by each local authority in its own area.Short-term cash flow support for local authorities will be made available to support this measure.

Providing specific information and advice

Business Continuity Planning: COVID-19 CHECKLIST: updated checklist on Business Continuity Planning which provides a checklist of preparatory actions for businesses in responding to COVID-19.https://dbei.gov.ie/en/Publications/Business-Continuity-Planning-A-checklist-of-Preparatory-Actions-in-Responding-to-the-COVID-19-Outbreak.html
COVID-19 GUIDANCE FOR SUPPLY CHAIN WORKERS prepared by the Department of Health for supply chain workers in relation to COVID-19. Applies to hauliers, maritime staff, pilots and aircrew, ground staff, port staff, maintenance staff, engineering staff and all others involved in the maintenance and repair of critical infrastructure to allow freight operations in and out of Ireland to continue.
Health and Safety Authority https://www.hsa.ie/eng/news_events_media/news/news_and_articles/covid_19_%E2%80%93_advice_for_employers.html

Other

Employees of businesses that need to reduce hours or days worked can avail of the SHORT-TIME WORK SUPPORT, which is a form of Jobseeker's Benefit and is an income support payment if an employee has been temporarily placed on a shorter working week. The payment is made in respect of the regular salary for the days that the worker is no longer working. Eligibility criteria apply (https://www.gov.ie/en/service/c20e1b-short-time-work-support/)
NEW REFUND SCHEME FOR EMPLOYERS: under an arrangement developed with Revenue, employers who have to temporarily lay-off staff and who are not in a position to make any wage payment to them, are asked to keep their employees on the payroll and pay them an amount of €203 per week - the equivalent of the COVID-19 Support Payment. When they submit payroll returns to Revenue via their payroll provider, Revenue will refund the employer the €203.
New support payment for the self-employed who have lost business and to those who have lost employment as a result of the COVID-19 pandemic, the COVID-19 PANDEMIC UNEMPLOYMENT PAYMENT. This support pays a flat rate of €203 per week for a six-week period.

Italy

SME country desk officer

Maria Vigliarolo

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Nationwide quarantine in force as of 2 March. Only essential movements outside of the house allowed. It is asked to telework whenever possible. Schools and non essential shops are closed. The open shops should respect distance. Borders more or less closed to travel by people (inward and outbound). 25 bn EUR package endorsed by Gvt on 16 March to support the economy (families and companies) and health system.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Due to the severe retsrictions imposed by the government, the economy is hit hard at all levels. Cerved first estimates (turnover lost) for 2020-21 are between around 270 bn EUR and 650 bn EUR depending from the duration of the crisis.Loss of turnover will further aggravate the financial situation of SMEs already hit by payment delays. Last year it was estimated that payment delays "ate" 10.000 euro per SME. Payment delays hit in particular businesses in the North-East of Italy ( the area most hit by coronavirus) . 40% of SMEs in Italy suffer payment delays: 55% of their customers (other busineses or the public sector) are regularly late with their payments. The tertiary (services) sector is the most affected.

Very SME-specific corona-related impact

Expected more than 7bn EUR lost for the tourism sector (31 million less tourists in the period March-May ). CNA survey: around 72% of SMEs affected (more in tourism and transport sectors); around 50% of them expect economic losses (again more in tourism and transport sectors). Heavy impact expected on the exports as half of them are provided by SMEs.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

Several improvements of SME guarantee fund. Simplification of Confidi for micro companies. Special fund to support internationalisation. Special fund for cultural sector.

The measures on guarantees and debt forebearences are worth ca. 3.2 billion EUR. The Ministry foresees a leverage effect of 340 billion EUR.
Special provisions for the Central Guarantee Fund will last 9 months. 1 billion EUR budget is foreseen to reinforce it.
Among these, free access for all businesses and an increase, in compliance with the EU rules, of the maximum guaranteed amount per single company at 5 million EUR
Automatic extension of the guarantee for transactions subject to loan moratorium signed by Abi (Italian Banking Association) and business associations
The opening to the "mid caps" and the increase of guarantee to 90% is not included (it will reach 80% and only for Regions which integrate the Fund's resources)
All the affected transactions have access to a special section of the Guarantee Fund, which will have an endowment of 1.73 billion, and will "cover" banks for 33%.
There is another guarantee mechanism, driven by Cassa Depositi e Prestiti. The State - with a budget of 500 million- will guarantee CDP, up to 80% of the exposure assumed, to guarantee the banks that finance damaged businesses who have no access to the SME Fund.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

600 EUR (March and April) bonus for self employed all sectors (should cover 5 mln people)One-off payments of 500 EUR per person for the self-employed, government support for companies paying redundancy payments to their staff, a freeze on any worker lay-offs, and a cash bonus for Italians still working during the lockdown.

Loans

Loans repayments suspended for SMEs and companies hit by emergency. Acces to the "first home fund" for self employed/professional ectivity.
Only for micro and small medium businesses, a clause to save the credit lines and to suspend payment of installments of mortgages and loans until 30 September 2020. Businesses must present a communication in which they certify that they have undergone one partial or total reduction of the activity as a consequence of the epidemic.

Administrative burden reduction / simplification

Social secutiry payments, compulsory insurance and taxes suspended for most hit sectors until May. VAT payments suspended until May for micro companies and for all companies in the most hit sectors.

Providing specific information and advice

A dedicated website provides information and digital services to citizens and companies (solidarietà digitale)

Other

Tax credits: 60% of March rent cost, 50% of sanitazing costs.

Latvia

SME country desk officer

Stanislava Kunovska

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Increase of COVID-19 patients in Latvia remains relatively subdued, compared with other European nations: 139 total cases, 15 new cases as of 23 March, no deaths, 5127 total tests (double the count of tests in LT and EE). A working group (representatives from Bank of Latvia, Employers’ Confederation, Chamber of Trade and Industry, Free Trade Unions, Ministry of Economy, Prime Minister’s Office, State Revenue Service, State Development Institution Altum) has been set up to elaborate measures to support SMEs, employment and continuity of business operations. Many industries were pleading the government for emergency help and companies stared to notify State Employment Service of collective lay-offs; however, food production and wood processing reported healthy demand.Food processing industry association warned that, should the crisis last more than 6-8 weeks, food stocks will run low and supply chains over borders will be disrupted. Latvia produces more food than it consumes, but much of the food is exported. Criticism was mounting that the government was not doing enough and messaging right about helping business; which resulted in the government talking some generous support decisions at their meeting on 17 March. Flows of goods and flow of people in private cars across Latvian borders with LT and EE remain open in line with the Internal Market principles, but flow of people in airplanes, ships, trains, buses and other public transport is prohibited as of this midnight 16 March (from Monday to Tuesday) to protect public health. Aviation industry estimates that total losses from the closure of borders and grounding of flights will reach at least 450 million euro in 2020 – however, transit accounts for only 2,5% of Latvia’s GDP. AirBaltic, national air carrier, has been told to stop operations, there will be no flights through Riga airport, except for cargo and emergency, and hospitality industry (hotel bookings, restaurant reservations, guides, buses) has seen a drop in demand north of 90%, effectively bringing the industry to a standstill. More and more restaurants and hotels announced closures on 18 March and Riga Transport Company reported a collapse of demand due to school holidays and COVID-related restrictions;More than 1000 Latvian citizens in private cars still remain stranded in Germany due to Poland’s exceptionally restrictive and prohibitive transit policies.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Bank of Latvia is saying a mild recession is now the main scenario, should the crisis be short-lived. While VP Dombrovskis warned that all EU economies risk a recession in 2020 due to COVID-19, Luminor bank economist Pēteris Strautiņš estimated that Latvia’s GDP will drop 5% in the event of a medium-term duration of COVID crisis. Latvian Chamber of Trade and Industry Executive Director Jānis Endziņš estimated that export-oriented, productive sectors will suffer more than those oriented towards domestic market.
Some examples of the impacts on businesses: State railway concern Latvian Railway sought emergency financing from the state in the amount of 40 million due to falling cargo volumes from Russia and delayed restructuring and announced the layoffs of 1,500 employees; National carrier airBaltic announced layoffs of 210 flight attendants and 140 pilots, suspension of bonuses and reduction of council and board salaries for six months saving 5 million EUR; some emergency flights were still permitted to and from Riga airport by special authorization of the Transport Minister, notably, from Moscow, Turkey and Canary Islands; Collective layoffs were reported by the hospitality industry, most hotels reporting zero new reservations from abroad and restaurants closing, due to closed borders and social distancing;

Very SME-specific corona-related impact

SMEs and precarious workers are appearing to be hardest hit, with Latvia's HORECA industry already reporting over 90% demand slump, and businesses pleading for tax and interest payment holidays for up to 3 years, fortunately, the savings rate has been high and residents have some 16bio EUR in deposits in LV banks. Specific measures that have been taken:

state-guaranteed, long-maturity, low-interest loans for SME operational expenses (supplies, wages, etc) through the state development institution Altum (State Treasury has some 1 billion EUR accumulated for eurobond repayment and this could be diverted to serve as an ad hoc guarantee fund);
tax holidays (income and social insurance contributions), if a business can prove a direct causal link between the tax arrears and COVID-19-induced drop in business volume;
push to expand on-line provision of services for all state and municipal agents in relation to citizens and businesses - eGovernment is already quite prevalent in Latvia, and now the intent is to switch to full eGovernment to ease red tape and cut admin costs further.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

The law passed on 20 March incudes fiscal stimulus will exceeing 2 billion EUR, including 10m EUR additional allocation for COVID related supplies in health sector, 600m EUR in re-programmed structural funds, 400m stand-by loan from the EIB, and financial instruments (loan guarantees and loans) financed from State Treasury exceeding 1b EUR(ALTUM will provide credit guarantees, and loans for crisis solutions. This program will be coordinated with the European Comission. For each program of 10-15 million risk coverage it is possible to provide support of 100 million euros).
Credit guarantees: Credit guarantees for all businesses up to 50% of loan amount and 5 million EUR cap through national development institution Altum;

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Loans

The Cabinet of Ministers also approved the proposal to provide the following support instruments to crisis-stricken businesses - loan guarantees for crisis resolution and a loan for crisis resolution; Commercial banks (SEB, Swedbank and Luminor) announced deferral of business and mortgage loan principal payments for periods between three and six months without additional bank commission. Measure as of 19 March: Subsidized loans for all businesses up to 1 million EUR with 50% reduced interest rate for tourism industry SMEs and 15% reduced rate for other tourism and related industry businesses through Altum; Use of EIB stand-by loan arrangement for EU funds co-financing in the amount of 400 million EUR for COVID response; Use of State Treasury Eurobond repayment funds in the amount of 1 billion EUR as a guarantee for emergency business loans and loan guarantees.

Administrative burden reduction / simplification

To make sure overpaid taxes are returned to businesses as soon as possible, the State Revenue Service will disburse VAT refunds within 30 days after the VAT declaration deadline, which is April 1, 2020. The indicative fiscal effect from the measure would be an estimated EUR 60 million. Also, considering the national and global emergency brought about by Covid-19, tax regulations will be amended to allow self-employed personal income tax payers to not make advanced income tax payments in 2020. The fiscal effect of this measure is estimated at EUR 30 to 35 million; public procurement procedures would be temporarily suspended in the public interest if procurement is linked to COVID-19-related supplies. Measuers adopted on 20 March:

Suspension of fiscal discipline rules and designation of expenditure as one-offs for calculation of structural balance; 1) Tax holidays (income tax, VAT, excise)for businesses from 1 to 3 years;
Prolongation of tax declaration submission deadline until 31 July 2020;
Cancellation of self-employed income tax advance payments since 1 January 2020;
Municipalities are allowed to extend deadlines of real estate tax payments;
State covers workers’ sickness leave from the first day of sickness;
Faster repayment of pre-paid VAT in 2020;
Boards of limited liability companies can vote electronically;
Some terms of contractual obligations and liabilities are extended, etc.

Providing specific information and advice
Other

The Parliament, after some debate by mostly opposition MPs, with 79 votes in favour and zero against, approved the Emergency COVID-19 Response Law, mandating tax holidays for businesses in affected industries, salary subsidies (for up to 150,000 workers), suspension of fiscal discipline and allowing Finance Minister to borrow funds on international markets to finance COVID response;The Finance Ministry has also proposed urgently drafting one special temporary bill aimed at overcoming the Covid-19 impact. This emergency legislation would include tax, social protection and business support measures, increasing the contingency funds, redistribution of appropriations and other necessary measures intended for a fast and efficient coping with the crisis; Finance Minister Jānis Reirs (New Unity/EPP) announced that Latvia’s priority now was to maintain and stimulate business activity, “without regard to fiscal discipline, laws and regulations”; “in these times of crisis, we must resort to emergency measures”.

Lithuania

SME country desk officer

Anja Nagel

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Nationwide quasi-quarantine in force as of 16 March: only essential movements outside of the house allowed, schools, restaurants, shops (except food stores and pharmacies) closed, gatherings forbidden, limitations to public transport and public services. Borders more or less closed to travel by people (inward and outbound) but not to movements of goods. EUR 2.5 bn package proposed by Gvt on 16 March to support the economy. Package adopted by Parliament on 17 March. In addition to EUR 2.5 billion package by Government, Government recommended that the Bank of Lithuania applied measures to the banking system, facilitating an increase of lending volume by EUR 2.5 billion.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Government revised its economic forecast downwards by around 4% points, estimates now that GDP will shrink by 1.2% in 2020. One of the biggest accounting firms in LT confirms on 23 March that business activity has been severly reduced. On 22 March, Government organized an online hackerthon to encourage the development of solutions to the crisis.

Very SME-specific corona-related impact

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

As par of its EUR 2.5 billion rescue package adopted by Parliament on 17 March, Government increases loan guarantees to businesses by EUR 500 million. It also softens the conditions attached to these guaranteees (-> for all businesses, not only SMEs).

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

As part of the EUR 2.5 billion package adopted on 17 March, Government foresees subisides totalling EUR 500 million to ensure laid-off workers or workers with reduced working time (+salaries) still receive the minimum wage. This also includes fixed payments to the self-employed who have previously contributed to the social security system. Furthermore, the Government offers to postpone tax payments as well as payments for gas and electricity consumption to the state owned company UAB Ignitis without any penalties. These measures benefit employees and businesses, including SMEs.

Loans

In addition to the EUR 2.5 billion package presented by the Government on 16 March, the Government recommended that the Bank of Lithuania eased capital requirements of the banking sector to facilitate additional lending up to EUR 2.5 billion. BoL is independent - so far, it has undertaken measures allowing an additional lending volume of EUR 1 billion; additional measures could follow. Nevertheless, it is unsure whether this will actually result in extra lending, notably to SMEs because banks are rather risk averse.

Administrative burden reduction / simplification

Simplification of some procurement rules to facilitate Government buying -> measure not directed to SMEs (more meant to facilitate buying of Government of strategic goods) but will benefit them, too.

Providing specific information and advice
Other

Luxembourg

SME country desk officer

Markus Hell

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Government has declared a state of emergency. Schools and universities are closed. All construction sites have been halted. Borders remain open for the moment.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact
Very SME-specific corona-related impact

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

A major liquidity initiative together with the state investment bank SNCI has been announced on 20 March. Full details will be published in the coming days. The initiative aims to support companies through simple and unbureaucratic means. Aid will only be granted to enterprises that are in difficulties because of the coronavirus crisis.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Wage subsidies for shorter working hours in companies have been offered and there has already been interest from many companies.

Loans

A bill was adopted on 11 March to provide financial aid for SMEs facing financial difficulties as a result of exceptional events such as acts of terrorism, eruptions of a volcano or epidemics like the current outbreak.

Administrative burden reduction / simplification

Taxes and social solidarity levies can be paid later.

Providing specific information and advice
Other

Malta

SME country desk officer

Armando Melone

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Situation update for Malta: 90 cases; 0 deaths (22 March 2020).
As of 22 March, the Maltese Government has announced restrictive measures for circulation. Additionally anyone travelling back from mentioned countries must follow a mandatory self-quarantine.
The Prime Minister announced a number of measures including; the closure of all schools, university and childcare centres, the closure of day centres for the elderly, stop on all mass activities unless absolutely necessary, all senior football games to be played behind closed doors.
Malta is also closing all non-essential shops and services. Public gatherings, of whatever nature, are also being banned. Malta has also closed all schools, restaurants, bars and gyms and stopped court sittings. All overseas travel has been banned.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Economic concerns have grown in recent days with the COVID-19 coronavirus outbreak set to trigger an economic recession. Malta is already taking a heavy hit ever since the government effectively closed its borders to non-essential travel through mandatory quarantine for all arrivals.The tourism and hospitality industry is facing the most significant threat. However, businesses across the entire spectrum are expected to feel the punch.

Very SME-specific corona-related impact

Maltese SMEs are feeling the impact of the coronavirus. At this stage, the impact varies by sector. With changing consumption patterns, some are losing, and others are gaining. There are however some sectors that have already suffered significant losses due their absolute dependence on tourism and incoming events. Virus' sustained impact on tourism could be more than some local businesses can take.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

Liquidity injection and bank guarantees of up to EUR 1.6bn consisting of:

Deferral of tax payments as previously announced (resulting in expected deferred tax payments estimated at between EUR 400m and EUR 700m)
EUR 150m of bank guarantees
EUR 750m of soft loans

Provision of guarantees by the Government of up to EUR 900m thereby making credit of EUR 4.5bn available.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

EUR 210m of funds (equal to 1.5% of Malta’s GDP in 2019) being made available to cover expenditure resulting from COVID-19.
Government will be speeding up its payments to private industry, such as VAT refunds in order to help the financial liquidity of employers and self-employed.
Individuals which ended up unemployed due to the employer’s mandatory suspension of business, will benefit from 2 days per week based on a salary cap of €800 per month covered by government. This is expected to apply to individuals previously employed in the accommodation, food and beverages, language schools and entertainment.
Self-employed individuals who suffered from a complete suspension of operations such as accommodation, food and beverages, language schools and entertainment, will benefit from 2 days per week payment based on a salary cap of €800 per month covered by government. This benefit is increased to 3 days per week if the self-employed also employs individuals.
Individuals employed with entities which suffered a downturn in operations of at least 25% but continued operating, will benefit from a 1 day per week benefit, based on a salary cap of €800 per month covered by government. This benefit is applicable also in the case of self- employed and is increased to 2 days per week if the self-employed employs individuals
Employees who ended up unemployed as from 9th March, will benefit from a special unemployment benefit of €800 per month

Loans

Possibility of requesting a three-month moratorium for both personal and business loans.
A number of local banks have announced measures to support business customers who are being adversely affected by the virus, with funds specifically set up for this emergency. Measures include capital repayment holidays, ease of trade finance services via internet banking at no additional cost and the provision of direct working capital for customers facing short term cash flow issues.

Administrative burden reduction / simplification

Postponement of certain tax payments
The measures announced by Government include the postponement of certain tax payments otherwise due by end of March and April 2020. No interest or penalties will be charged on tax payments that are postponed in terms of this measure.
EUR 700 million in deferred tax payments, including income tax, VAT and NI contributions, for the months of March and April for employers and the self-employed;

Providing specific information and advice
Other

Netherlands

SME country desk officer

Krista de Spiegeleer

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

The Nederlands so far have take the option to go for group immunity. 'soft lock down' however was introduced on 23/03. People are advised to stay at home - only relocations for work or grocery shopping are allowed. No big gatherings or events are allowed until 01/06. Schools, bars, restaurants etc are closed. No other lock down measures. Sportfacilities are closed. Social distancing and protection of the most vulnerable are encouraged.Telework is encouraged.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact
Very SME-specific corona-related impact

Temporary arrangement for compensation for wage costs (Ministry of Social Affairs and Employment) for entrepreneurs who expects at least 20% loss of turnover. Can receive salary contribution for a period of three months (maximum 90% of the wage bill, depending on the loss of turnover). UWV will provide an advance of 80% of the requested contribution.
Extra support for independent entrepreneurs (Ministry of Social Affairs and Employment and municipalities): Self-employed can receive additional income support for three months through an accelerated procedure. This supplements the income to the social minimum and does not have to be repaid.
Relaxation or deferral of tax payment and reduction of fines (Tax and Customs Administration).
Measures under development: Temporary guarantee for agricultural and horticultural companies (Ministry of Agriculture, Nature and Food Quality)

Consultation on tourist tax (central government / municipalities) and culture sector
Compensation scheme for affected sectors (Ministry of EZK)

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

SME credit guarantee scheme for businesses affected by the coronavirus. On March 11, the Dutch government announced it aims to introduce further measures to support SMEs hit by the crisis via the opening-up of the guarantee instrument for SMEs (BBMKB) for those affected by the outbreak.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Measures are in existence to allow large and small companies to temporary reduce working time, where the government compensates workers for hours less worked.

Loans

Microcredit provider Qredits finances and coaches a large group of small and starting entrepreneurs, who often find it difficult to obtain financing through the bank. Qredits opens a temporary crisis measure: for small entrepreneurs affected by the corona issue, a interruption of repayment of six months is offered and the interest during this period is automatically reduced to 2%. The Cabinet supports Qredits for this measure with a maximum of 6 million euros.

Administrative burden reduction / simplification

Businesses that experience problems in obtaining bank loans and bank guarantees can use the Guarantee Business Financing scheme (GO). The government proposes to increase the GO's guarantee ceiling from 400 million to 1.5 billion euros. With the GO, EZK helps both SMEs and large companies with a 50% guarantee on bank loans and bank guarantees (minimum 1.5 million - maximum 50 million euros per company). The maximum per company is temporarily increased to 150 million euros. The Cabinet is committed to providing all warranty space that is required.

Providing specific information and advice

The Netherlands Enterprise agency offers a link with a FAQ. It contains health-related information, but also information for employers on shortening working hours.

Other

Poland

SME country desk officer

Maciej Otulak

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

The Ministry of National Education has decided to stop education activities in all types of schools, nurseries, kindergartens and universities from 12 to 25 March. Museums, cinemas and theatres are also closed. The government is considering similar solutions for restaurant and bars.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Right now, it is difficult to examine in quantitatively the effect of the pandemic for the economy and its sectors. Various institutes and experts expect a GDP slowdown and possible recession – from positive figure of around 1.5-2% (Polish Economic Institute and Fitch Ratings) to negative -3.6% (Morgan Stanley). Such a divergence shows difficulties in modelling the most likely scenario because the economy is facing is unprecedented situation. The quality of any economic forecast is not very precise and it can fluctuate depending on the duration of economy’s lockdown and further decisions concerning business restrictions in weeks to come.

Very SME-specific corona-related impact

In general, very high negative impact, espoecially for micro enterprises

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

On 10 March, Poland declared it was preparing measures to support the financial liquidity of enterprises through cheap loans and guarantees - for details, see separate document: COVID response

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Employers who find themselves in a difficult situation related to the spread of coronavirus will receive support from the Guaranteed Employee Benefits Fund. The financing will apply to companies whose turnover will drop by at least 15%.

Loans
Administrative burden reduction / simplification

Also, a new method of loss settlement by entrepreneurs will also be introduced, with losses incurred in 2020 to be deducted from the tax that was due for 2019. Furthermore, the government would abolish the obligation to impose penalties for failure to comply with contracts concluded under public procurement.

Providing specific information and advice
Other

For details, see separate document: COVID response

Portugal

SME country desk officer

Nicola-Elizabeth Morris

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Number of cases/ regional impact: 22 March: the number of patients testing positive for Covid-19 was 2060, 13674 suspected cases, 14 cases cured), and a total of 23 deaths. Health services expect that the peak in the number of cases will occur around mid-April. Based on data from late last week, the most affected regions are the north (506 confirmed cases) and Lisbon 361 (confirmed cases). On 18 March, the State of Emergency was declared for 15 days (Presidential Decree n.º 14-A/2020: https://www.portugal.gov.pt/pt/gc22/comunicacao/documento?i=decreto-do-governo-que-regulamenta-o-estado-de-emergencia- ). General measures include:

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact
Very SME-specific corona-related impact

Businesses are particularly affected by measures such as the forced closure of certain types of business, closure of borders (9 border points have been kept open for circulation of goods and some cross-border commuting of workers), restrictions on free movement of people.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

COVID-19 credit line under the Capitalizar programme: The COVIS-19 credit line under the Capitalizar programme has been set up to support businesses affected by the epidemic. It is open to businesses that have undergone a drop in sales of at least 20% in the last 30 days (in comparison to the 30 previous days). The total budget allocation is 200 million euros (for working capital and a scheme known as "Plafond Tesouraria" that enables businesses to receive credit with a mutual guarantee from the capitalizar fund. This facility works on a first come first served basis.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

No new grants announced at this stage. Some business stakeholders have highlighted a need for grants. For ongoing grant schemes and projects, some flexibility measures have been announced to cater for actions / projects that are negatively impacted by the epidemic (for example, for activities that did not take place due to the crisis, or where targets are not fully met, prolongation of deadlines for calls, etc.) (source IAPMEI)

Loans

See guarantees column
Treasury credit line for micro—enterprises in the tourism sector affected by the COVID-19 epidemic (budget allocation of 60 million euros for interest free loans)

Administrative burden reduction / simplification

The Portuguese Social Security Authorities have announced postponement of the deadline for making Social security contributions (specific rules currently being defined: http://www.seg-social.pt/noticias/-/asset_publisher/9N8j/content/adiamento-do-pagamento-das-contribuicoes-correntes-a-seguranca-social. Furthermore, there is an extension of the deadlines for making corporation tax payments and submitting tax declarations. The Government also announced that there will be simplifications in administrative procedures (e.g. certification) to enable businesses to concentrate on essential matters but no specific details available yet.

Providing specific information and advice

Government supported agencies such as IAPMEI are providing specific COVID updates on their web sites.

Other

Introduction: The State Budget 2020 has been approved by the President and is due to come into effect on 1 April. It takes account of existing policy commitments and also the CORONA virus challenge. The President has already announced that some changes may be needed to the budget in response to the epidemic. A review of measures for families and businesses in response to the CORONA epidemic will probably take place in July.

The government has also announced a reduction in social contributions.
Legislation is being prepared by the Government in consultation with the Portuguese Banking Association (APB) and Bank of Portugal with a view to extending deadlines for the re-imbursement of credits (probably until the end of the year).

Romania

SME country desk officer

Andon Penev

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

On 16/03/2020, the Romanian President declared a state of emergency for 30 days in response to the growing number of COVID-19 cases across the country.
During this time, all schools and universities are closed.
Anyone within Romania's borders who needs medical help as a result of the Covid 19 infection, will get it for free.
All government members, as well as some members of National Liberal Party (PNL) are in self-quarantine.
The activity of serving and consuming food and alcoholic and non-alcoholic beverages is suspended, organized by restaurants, hotels, cafes or other public places, in the spaces destined for this purpose inside or outside the location. It is allowed to organize by the economic units of the profile of the activities of commercialization of the food products and of the alcoholic and nonalcoholic drinks that do not suppose to remain the clients in the spaces destined for this purpose, like those of type "drive-in", "room-service" or delivery to client.
All cultural, scientific, artistic, religious, sports, entertainment or gambling, spa treatment and personal care activities, held in confined spaces, are suspended.
Group gatherings are limited to three persons in public. All group activities in closed spaces are prohibited, including religious gatherings. HoReCa and shopping malls are closed, except for food shops and pharmacies. Drivers of freight vehicles with a maximum authorized capacity greater than 3.5t have the obligation, at the border crossing point, to have on them and to wear individual means of protection, such as disinfectant, gloves, face mask and documents. which attests the route of travel to the destination. The drivers of the aforementioned vehicles, who arrive from or have passed through "red areas" or "yellow areas", are not subject to quarantine or isolation measures, if at the border crossing point they do not show symptoms associated with SARS coronavirus infection -CoV-2.
The assemblies and subassemblies of medical equipment manufactured in Romania for beneficiaries outside the national territory are not subject to export restrictions.
People returning from Italy or other affected countries such as China, Iran and South Korea have to go into mandatory 14-day quarantine. Land borders with low volumes of traffic with Hungary, Bulgaria, Ukraine, Moldova and Serbia have been closed.
All flights by airline operators to Spain and from Spain to Romania are suspended for all airports in Romania for a period of 14 days. The measure takes effect from 18.03.2020, 18.00, Romania time. The measure of suspension of flights by air operators to Italy and from Italy to Romania is extended for a period of 14 days, starting with March 23, 2020. These measures do not apply to flights with state-owned aircraft, freight and mail, humanitarian or emergency services, as well as non-commercial technical landing
All football matches postponed until after March 31.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Blocking or bankruptcy of otherwise healthy sectors or companies
Social-economic and fiscal-budgetary balance endangered.
The management and unions at the Dacia car factory in Romania have agreed to temporarily suspend the production starting Thursday, March 18, until April 5. During this period, the employees will stay at home and be paid 85% of their wages

Very SME-specific corona-related impact

Business sector representatives estimate that Government package (3% GDP) is not enough for the approx. 150,000 companies/ SMEs at risk of insolvency, employing approx. 850,000 people, at risk of losing their jobs.
Need to institute some rules regarding work organization by all employers, so as to mitigate the infection risk at the workplace. Clear rules are needed through the Labor Territorial Inspectorate and the Ministry of Health and the Ministry of Interior. Currently there is a lack of the necessary protective equipment for employees.
Clear signals from a lot of activity sectors that the situation of a sudden death of a business is reached in the field of tourism, in the hotel industry field, by restaurants, events / shows organizers.
Social contributions by employers is by far their biggest expense, which is endangered. Otherwise affected sectors have to lay off many employees.
SMEs for which deferral of tax payments is not enough wold need a state-guaranteed loan scheme support.
Retail and transport sectors need help in order to ensure continuous supply of food and medicines, gas, electricity and fuel to citizens.
Tourism sector is very exposed to the risk of bankruptcies and needs rapid intervention.
In order to better protect employees, Romania's Labour Code needs urgentl update in order to facilitate work from home or from a distance.
Slutions to help their debtors overcome the problems prompted by the Covid-19 epidemic are needed: new regulations and support from authorities like the central bank and the Government.
The payment deadlines can’t be deferred by the banks themselves, without following procedures that would result in the deterioration of the customers’ creditworthiness and in the quality of their loan portfolios.
SMEs need to have their tax payments deferred. The state guarantees related to bank loans should also be deferred, in line with the banks deferring the installment deadline. This might require the European Commission’s approval.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

The Government package (3% GDP) also includes RON 15bil. (EUR 3.12 bil.) guarantees for easing the access of SMEs to loans for working capital and investments.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

The Government put forward a package estimated at approx. 3% of GDP.
Measures include support for technical unemployment for 30 days (or up to 60 days), with EUR 300 mil. earmarked from EU funds for an equivalent of 620,000 salaries (200,000 work contracts were suspended last week).
In addition, the reimbursement of VAT is speeded up in order to provide additional liquidity to companies (about EUR 1.9bil. by the end of April).
The state would pay the minimum wage to persons who cannot enter in technical unemployment, like self employed or micro/ family enterprises.

Loans

The Government package (3% GDP) also includes RON 15bil. (EUR 3.12 bil.) guarantees for easing the access of SMEs to loans for working capital and investments.
The National Bank of Romania acts and fully supports the steps taken by the banking system to assist individuals and companies affected by the crisis, through appropriate measures, on a case by case basis, to ease ongoing loan repayments and to facilitate access to new lines of credit.
CEC and Banca Romaneasca (purchased by Eximbank recently) have already announced allowances extended to their customers, which include deferring the payment of loan installments for one or two months.

Administrative burden reduction / simplification

The board of the National Bank of Romania (BNR) lowered the key interest rate to 2% and started purchasing bonds in the secondary markets, ensuring that commercial banks have sufficient liquidity.
Public Health Departments can employ personnel, directly, without the contest procedures, without the need to have the status of civil servant. 42 million lei allocated from the Government Reserve Fund to the Health Ministry to support the quarantine activit.
In maximum 24 hours from the moment it was decided that a person should be isolated at home, local authorities should be informed in order to check the observance of the isolation decision.
Counter any fake news by Providing correct information to citizens, taking into account the different categories of citizens, their situation, provide all the useful information, the necessary information to make sure that the citizens know what they have to do
Reducing the direct interaction of citizens with state institutions, a measure in this respect was the local taxes deadline extension.

Providing specific information and advice

15 RECOMMENDATIONS on responsible social behavior in prevention coronavirus spread (COVID-19)Protect yourself, avoid direct contact!

Avoid crowded areas where you are exposed to direct contact and / or interaction with a large number of people, such as public meetings, queues, traffic areas

intense recreational areas.

Keep children away from those playgrounds that involve touching common surfaces / objects by a large number of children.

Limit to maximum any direct contact with other people, except those who do part of the small family, through gestures such as: shaking hands, the hugs, the kissing of the cheeks or the hands, the touching of the faces with the hands.

It is recommended, including for the persons with whom live, DO NOT come into direct contact until after sanitation hands when you return home.

Avoid touching surfaces that are frequently touched by other people, such as: railings, handles, handles, lift or access buttons.

If, however, you need to reach these surfaces, Protect yourself with disposable napkins.

Keep a significant distance of 1.5 meters from the others you meet them. If you are in public transport try NOT to stay face to face with other people.

Make sure, after using public transport, that you have cleanse your hands before touching your face, nose or mouth.

Use, as far as possible, alternative routes or modes of transport to avoid crowded areas of human trafficking. If the program allows you, Use low hourly traffic intervals.

In urban areas, for small distances, use is recommended alternative modes of travel, either by bicycle / scooter electric, or walking.

Avoid travel to countries with a high number of infections with the new coronavirus (COVID-19) and discourage people from returning to the country from risk areas, respectively from countries with large numbers of cases with the new one coronavirus. Updated real-time data on the countries targeted can be obtained by accessing the link ( http://www.cnscbt.ro/ ), respectively " List of regions and the localities in the red zone and the yellow zone with transmission of COVID-19 ”

If you are traveling to a country exposed to the infection with the new one coronavirus is at risk as when returning to the country, depending on by updating the red / yellow areas, you need to stay in quarantine / isolation at home for 14 days, together with family.
Romanians who return to the country from risk areas will necessarily you have to go into self-isolation at home, which means that the whole family to do the same.

Limit the use of banknotes and coins, opting for payments with card / phone or online payments.

Virus transmission is carried out in a significant proportion through the money, with which he contacts, statistically, a very number great people.

Opt for work from home, as far as you have this opportunity by the employer.

There are recommendations from the Ministry of Labor, in the attention employers, to make the work program more flexible hire and present any legal options they have at mood. Details here: https://bit.ly/2TGyV8d

Comply strictly with the rules of personal hygiene recommended by the authorities, to protect you and your loved ones. Use the mask protection only if you have flu or cold symptoms, to have them protect others.

Wash your hands with soap and water for at least 20 seconds afterwards any contact with a potentially contaminated surface.
Use paper towels, preferably, to wipe your hands.
Do not touch your eyes, nose or mouth with unhealed hands.
If you sneeze or cough, cover your mouth and nose with a napkin single use, which you take care to immediately dispose of in the basket garbage.
Frequently disinfect with alcohol or chlorine solution, the surfaces you come into contact with, both at home and at the place of the work.
Ventilate the rooms in which you operate several times a day activities.
Take antiviral or antibiotic drugs only when prescribed doctor.
DO NOT drink liquids from the same glass / glass with other people and do not use the same cutlery.
DO NOT make direct contact with persons in self-isolation at home, regardless of whether or not it has specific symptoms coronavirus.
Protective mask / surgical mask protects those around if you have flu or cold symptoms, as it prevents the spread of the virus through the respiratory tract.
The protective mask must completely cover the nose and mouth to the person who wears it.

Keep in mind that not in all cases the infection with the new one coronavirus (COVID-19) is visible through specific symptoms (cough, fever,difficulty breathing).

The virus can be spread even by apparently healthy people, who are not aware that they are carriers of the new coronavirus.
Find out about the new coronavirus from official sources only!
You can get details by calling 0800.800.358, which is a number for information, it is not an emergency number.
Only in case of emergencies call 112!
Protect your loved ones, do not expose them!

Avoid, as a priority, exposure of the elderly (over 65 years) and those with low immunity / diseases associated with other people with flu or flu symptoms cold, in crowded areas or areas with heavy human trafficking.

According to statistics, the most vulnerable persons in the case Infections with the new coronavirus are the elderly with multiple conditions associated (eg, diabetes, chronic lung disease, diseases cardiovascular, cancer).
In Italy, until March 9, more than half of the cases infection has been recorded in people over 65 years old and approximately 90% of deaths occurred in patients over 70 years.
There were no deaths in patients under 40 years of age and a single death between 40 and 50 years.
In the case of young people and children (0-18 years) the most was recorded low infection rate with the new coronavirus, respectively 1.4%.

Report to the authorities any case you are aware of that could have happened in contact with a person confirmed with the new coronavirus or would have come from one affected country (red or yellow area) and not in isolation.

Demonstrate a preventive attitude towards any case, since the spread of the virus is possible also from people who do not manifest specific symptoms.

Report to your family doctor immediately if you have traveled to the affected areas coronavirus (COVID-19), even though they were NOT listed at the time areas under alert. Details can be obtained by accessing the link ( http://www.cnscbt.ro/ ), respectively " List of regions and localities in the red zone and the yellow area with transmission of COVID-19 ”, updated periodically.

If you cannot contact your family doctor, call Directorate of Public Health in your county and last court at 112.

Stay home if you have flu or cold symptoms (cough, fever, difficulty and call your family doctor for advice, DO NOT go out the first moment at the emergency units.

There is a risk, if you are a carrier of the virus, to share the new coronavirus with others.
It is preferable to stay at home and transfer to the hospital to be carried out in an organized manner, respecting all measures of insulation.

If you are in self-isolation at home, strictly follow the recommendations authorities, do NOT leave your home in any way for 14 days, Do NOT receive visitors and do not get in close contact with any peoplewhich provides you with food or products.

If you violate the system of self-isolation at home you are at risk fine up to 20,000 lei, as well as criminal case in case which contribute to the spread of the virus.

Other

Increasing the diagnostic capacity via inventory of all devices nationwide, purchase of new devices, and increase of the number of specialists involved in the diagnosis and, of course, ensuring supplies in order to cope with an increased diagnostic capacity.
Addresing the shortage of protective equipment by all possible channels most from abroad, as Romania did not have production capacity and identify Romanian manufacturers who can produce in Romania, biocidal products, disinfectants, masks, protective garments and all other categories of equipment that are needed.
Ensure the strict enforcement of rules by military ordinances and legislative documents and drastic sanctions for those infringing legal provisions or the provisions included in the respective ordinances.
Local authorities to perform the disinfection of the spaces, means of public transport, institutions must ensure the disinfection and, here, you will have to make sure that there are all the necessary amounts to carry out the disinfection process.
Regular consultations with the representatives of trade unions and employers on COVID-19 measures.
The Government’s consultations with the representatives of the National Tripartite Council for Social Dialogue will continue within a permanent mechanism.
Personal protective equipment for the employees of sectors on the frontline of combating the spread of COVID -19, are purchased and will be provided
Police escorted Romanians coming from the most affected areas of Italy to their home counties in a bid to ensure they self-quarantine.
The National Bank of Romania has taken all the necessary measures to further ensure the smooth operation of payment and settlement systems underlying payments in the domestic currency, so that commercial and financial transactions can be performed under normal conditions, regardless of how the situation caused by the pandemic unfolds.
The National Bank of Romania is constantly monitoring and analysing domestic and international developments, as well as the impact of the COVID-19 pandemic on financial markets and the domestic economy, and stands ready to ensure, under the circumstances, the necessary stability and the liquidity of the banking system, for the proper functioning of public finances and the real economy. The top priority is the current financing of public spending (wages, pensions, social transfers, investments, etc.). In case of increased household demand, the NBR will provide banks with continuous cash flows for all operations, including liquidity for ATMs. Bank customers have full access to the money available in their accounts, irrespective of whether they choose to withdraw cash from ATMs, make bank transactions or, if necessary, go to banks’ branches and agencies.
However, to avoid direct physical contact and non-urgent travel, the The National Bank of Romania recommends that bank operations be made, as far as possible, using the modern payment methods available, such as cards or online payments. In this period, most financial institutions have taken several decisions to protect the health of their customers and employees, while ensuring business continuity.

Slovakia

SME country desk officer

Antonella Correra

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

The first cases of coronavirus infection in Slovakia were reported on 6 March. Since then, the number of patients has been growing steadily. Latest number of confirmed infected patients: 187 (23.03) . The new PM wants to increase testing. Anti EU-feeling in the public opinion and media is very strong. Recurrent messages are: No real solidarity in the EU – it was China who helped Italy, not even the US, a favoured partner of the EU, EU is a bunch of totalitarian, bureaucratic, failed politicians, Germany blocking protective materials from others including Czechia and Slovakia, Communist nostalgia: Cuba and Russia have come to help Italy, not the EU. Very strong feeling that the EU has failed all along, especially in terms of cooperation and unity. Some posts predict the end of the EU. As of Monday 16.3 SK is in state of emergency. All small retail shops and service providers with the exception of grocery shops, pharmacies, newsagents, petrol stations, veterinary ambulances, and shops selling animal food. International travel has been banned. Restaurants remain open but are not allowed to serve clients on their premises.The government has announced national emergency for health care. It has been taken as a preventive decision. Under this regime, some professions, including health care workers, fall under state orders. Schools are closed. The automotive industry has been halted, sine VW has shut down all its European factories for the next three weeks.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

SK Central bank is estimating different impact scenarios, varying according to the duration of the emergency measures . The baseline scenario is a contraction of the economy of 1% - 1,3% GDP this year , while a more optimistic development envisages possible growth of between 0-1 percent if there is a recovery later in year. Nevertheless, should these measures remain in place for the next two months, a 5% GDP contraction has been estimated. Three-month duration of the measures will make the economy shrink by 10%. Exports will fall by 25%. https://spectator.sme.sk/c/22363370/slovak-economy-braces-for-covid-19-virus-hit.html

Very SME-specific corona-related impact

No measures have been announced yet. The new Government, emerging from the elections of 29 February, was sworn in on 21st March and on 23 march held its first meeting with the COVID-19 Security team. The economy Minister, and deputy Prime Minister, Richard Sulik , has announced that his priorities will be: reduction of the impact of the coronavirus on the economy and improvement of the business environment . The new government is working on a "Lex Coronavirus" a package of 42 measures which should be adopted this week. Vice-Prime Minister for investments and regional development, V. Remišová (OLaNO/EPP) wants to use 4 billion EUR from EU funds to alleviate economic impact; she calls for more flexibility concerning Small and Medium Businesses, Health sector and Operational Programme Human Resources.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees
Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)
Loans
Administrative burden reduction / simplification
Providing specific information and advice
Other

Slovenia

SME country desk officer

Borut Lozar

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Restriction with sanctions for public gatherings from 20 March.
Schools and all shops but grocery, post offices, banks and few other exemptions have been closed down since 16 March. Those forced to stay at home to look after their children would receive compensation (50% of pay).
Critical situation with protection material, in particular masks.
Alibaba’s funder Jack Ma after a call from the (Slovene) UEFA chair Ceferin donated 300.000 Chinese masks.
Ljubljana Clinical Centre sews washable masks from cloth. Domestic production of protection masks launched; prototypes of respirators ready.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact
- The Chamber of Commerce and Industry is expecting a drastic drop in GDP (some 10%). Severe affects (both in employment and financing) especially in logistics, tourism, hospitality, services, retail.
- The new Government ordered a 30% proportionate reduction in spending rights of all direct budget users. The funding reassigned to general budgetary reserves for dealing with the coronavirus epidemic.
- The new Finance Minister had already announced a supplementary budget. The need for a supplementary budget became obvious when IMAD downgraded on 12/3 its spring economic forecast (GDP growth projection) for the country for 2020 from 3% to 1.5% growth (but their new forecasts would surely be much lower).
- The Slovenian Government has welcomed EU-wide agreement that fiscal rules should not stand in the way of action to fight the coronavirus epidemic.
Very SME-specific corona-related impact
- The Chamber of Craft and Small Business demands major economic assistance and not just loans. They list Austria as a good example.
- The Chamber of Commerce and Industry demands 4-6% of GDP economic assistance; says economic situation like in 1991 independence war (when Slovenia lost Yugoslav market).
- National Assembly already voted on most urgent mitigating legislation; whereas all-encompasing "bazooka" Corona Mitigation Act (on rapid financial assistance) is planned to be sent to the National Assembly by about 27/3.
- A professor at the Faculty of Economics (Lj.) estimates the GDP contraction in 2020 between 6% (if crisis is short) and 14% (if crisis prolongs). He calls for rapid state intervention in the amount of 15 % GDP, i.e. 7,5 billion euro of liquidity funds, suggesting the country to issue long-term bonds bought by the Central Bank trough the ECB’s Pandemic Emergency Purchase Programme. Minister of Economy confirmed that Slovenia intends to use its share of 3 bilion euro in the ECB programme, in addition to its national funds.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees
- Short- and long-term measures such as state guarantees are planned over the next weeks, mostly from existing financial facilities.
- The state-owned export and development bank SID Bank could adopt a second round of anticyclical measures if the contagion is not stopped, e.g. via a special anticyclical fund; guarantee schemes for some sectors could be envisaged; and for export-orientated companies SID Bank will offer several insurance instruments, including mitigating the disruption of value chains.
Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

The bill providing pay compensation for companies that temporarily lay off at least 30% of their workforce due to disruptions in supply or a drop in demand. Temporarily laid-off workers entitled to 80% of their wage average from the past three months, with the employers having to cover 60% of this sum and the state 40% (in cases of self-isolation the state covers the full 80% ) The initial cost to the budget is estimated at around EUR 50 million. The employer has to keep the post for minimum 6 months since the worker is temporarily “put on waiting”. The employers able to use this state aid only once and for max. three consecutive months. Employers who are tax debtors, have violated labour legislation or are undergoing insolvency proceedings cannot apply.

Loans
- Roughly EUR 600 million (with maximal flexibility regarding the repayment of loan and moratorium and now e.g. also possible to finance 100% of the project) coming from the state-owned export and development bank SID Banka, plus additional EUR 200 million from SID Bank for new financial measures (loans, credit lines) implemented directly or via banks to provide liquidity.
- The Slovenian Enterprise Fund with EUR 115 million available for SMEs, while the Slovenian Regional Development Fund offering a scheme under which companies can roll over debt.
Administrative burden reduction / simplification
- Prolonged deadlines for tax documentation filings for businesses until summer.
- Companies can ask for a tax deferral of up to 2 years or for paying tax in up to 24 instalments within 2 years: a deferral has already been possible previously, but conditions were softened and simplified.
- Suspension of all timelines in court and non-urgent administrative proceedings for the duration of the epidemic.
Providing specific information and advice
- The Ministry of Economy and the Ministry of Finance provide info on corona-related measures on their websites.
- The Economy Minister appealed to manufacturers to organise work in such a way as to protect their staff's health in order to remain functioning despite the coronavirus epidemic (but some manufacturers have nevertheless temporarily closed their production).
Other
- The self-employed able to defer their social contribution payments for the coming three months (April, May, June) by up to two years.
- Businesses, associations, co-operatives, farmers and the self-employed can ask banks for a 12-month deferral of credit payments, under the condition that the company was solvent and paying taxes. Banks obliged to grant such a deferral e.g. to restaurants (as these were obliged to be closed). Banks cannot deny deferral applications without grounds. The measure to stay in force 18 months after the end of the crisis.
- The government can impose some trade restrictions (and in some cases cap prices) to ensure sufficient supplies.
- Electricity prices for households and small businesses reduced by about 20% from 1 March till 31 May.

Spain

SME country desk officer

José Blanquez-Yeste

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Reinforced confinement since 10 March Schools and university closed. Supension of social, cultirual and sports public events. Speical measures in certain autonomous comunities.Mobility reduced suspension of flights to Italy, State of national alarm declared since 14th of March, govenment can take extrarodinary measures for 15 days all shops closed except those providing basic necessities goods. Respect of minimum affluence and limited contacts with Respect of minimum affluence and limited contacts

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact
Very SME-specific corona-related impact

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees
- Spain has just proposed a 200.000 million plan to face the economic consequences of the Covid-19 outburst.
- Half of it is a guarantee line to support companies with liquidity issues.
Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Autonomous affected by the crisis to receive compensation for reduced activity. 2800 million transferred from central government to autonomous regions.1000 million reserved for urgent sanitary interventions400 million to support the touristic, transport and hotels’ sectors25 million to support the canteens providing food to vulnerable population30 million to support research on COVID-19 treatments.

Loans

17000 million to support organisations that will suffer financial difficulties. In addition to this the government will also call for private funding.

Administrative burden reduction / simplification

Other measures are to propose a postponement of mortgages for the households, easier procedures for temporary unemployment, the prohibition to cut the provision of water, gas and electricity in case non-payment, exoneration of 100% of social taxes for SMEs that keep their personnel in post and 75% for bigger companies, unemployment will not be linked to a minimal period of contribution or to a minimal period of employment.

Providing specific information and advice
Other

Protecting companies from hostile foreign buy out due tdecrease of stock exchange value

Sweden

SME country desk officer

Vilmos Budavari

Brief overview of the current situation (e.g. closure of schools, restaurants, …)

Central government will compensate municipalities and regions for extraordinary measures and extra costs in health and medical care associated with the COVID-19 virus.
To reduce the risk of the virus spreading in society, the qualifying day for sick pay will be discontinued between 11 March and 31 May, in that central government will pay sickness benefit for the first day of sickness.
The Public Health Agency of Sweden, the National Board of Health and Welfare and the Medical Products Agency will be allocated additional resources.
Resources for the disease carrier’s allowance will be increased, as it is assumed that the number of individuals entitled to this benefit will increase.
Central government will temporarily assume responsibility for sick pay for two months.
Liquidity reinforcement is given via tax accounts for VAT, employers’ social security contributions and employees’ preliminary tax from 1 January 2020.
Short-term layoffs introduced as of 16 March.

Brief overview of the exisiting and potential corona-related impact

General economic corona-related impact

Remains to be seen. Sweden recorded impressive economic growoth over the past years. Its most important export markets (e.g. Germany or Asia) are now experiencing a slowdown which will impact the domestic economy. Many companies are now issuing layoff notices due to the economic situation as a result of the coronavirus. Truck company Scania stops operations at most factories in Europe as of this week (23/3). The reason for the decision is a component shortage and significant disruptions in the supply and logistics chain as a result of the spread of the coronavirus in Europe. In Sweden, at least 9000 employees are affected, not including subcontractors. Truck manufacturer Volvo announced that it will close its factories in France and Sweden as of this week (23/3), 20.000 staff will be temporarily laid off.. The Norwegian hotel chain Nordic Choice Hotel has notified 4500 employees in Sweden of layoffs. Scandinavian Airlines has laid off 90% of its Swedish staff. Also Volvo Cars will temporarily shut down its factories in Sweden, 25.000 employees are affected.

Very SME-specific corona-related impact

SMEs provide an important part of output and employment. The expected economic slowdown could impact them considerably. Hence the government measures enacted early on and detailed here to counteract the fallout of the crisis.

Brief overview of corona-related national and regional policy measures taken to support SMEs

Financial guarantees

The Government proposed that airlines be able to receive credit guarantees in 2020 amounting to a maximum of SEK 5 billion, of which SEK 1.5 billion is intended for SAS. The proposal is presented in an additional amending budget. Also proposed in the budget is that the Swedish Export Credit Agency’s credit guarantee framework be expanded to support Swedish export companies and, by extension, the shipping industry.

Grants and financial transfers (including e.g. wage subsidies for firms that need to either reduce working hours of the staff or temporaraily put them on hold)

Short-term layoffs introduced todayThis proposal means that employers’ wage costs can be halved, in that central government will cover a larger share of the costs. This model is similar to short-time work, but the subsidy level is significantly increased. The employee receives more than 90 per cent of their wage. The aim is to save Swedish jobs. It is proposed that the proposal on short-term layoffs enter into force on 7 April and be in effect throughout 2020, but be applied from today, 16 March.Central government to assume sick pay responsibility for two monthsIt is proposed that central government assume the entire cost of all sick pay during April and May. Self-employed persons will also be compensated in that they can receive standardised sick pay for days 1–14.

Loans

In addition to the Government’s measures, the Riksbank has announced that it is loaning up to SEK 500 billion to companies via the banks to safeguard credit supply. Finansinspektionen (the Swedish financial supervisory authority) has announced that it is lowering the countercyclical capital buffer to zero to safeguard a well-functioning credit supply.
On 20 March, a range of measures were presented to make it easier for Swedish businesses, particularly small- and medium-sized businesses, to access finance at this difficult time. Almi Företagspartner AB will receive a capital contribution of SEK 3 billion to increase its lending to small- and medium-sized businesses throughout the country. The Swedish Export Credit Corporation’s credit framework will be increased from SEK 125 billion to SEK 200 billion and can be used to provide both state-supported and commercial credit to Swedish export companies. Furthermore, the Swedish Export Credit Agency will decide on credit guarantees that entail new and improved credit opportunities for businesses.

Administrative burden reduction / simplification

Liquidity reinforcement via tax accountsUnder this proposal, companies can defer payment of employers’ social security contributions, preliminary tax on salaries and value added tax that are reported monthly or quarterly. Company payment respite covers tax payments for three months and is granted for up to 12 months. This replaces the previously presented proposal. It is proposed that the new regulations take effect on 7 April 2020, but can be retroactively applied from 1 January 2020. This means that companies that have paid into their tax account for January to March can receive repayment of the tax from the Swedish Tax Agency.
The crisis package now presented can – depending on how the situation develops – encompass more than SEK 300 billion if the entire liquidity reinforcement through tax accounts is used. The Government intends to present the proposals to the Riksdag in the additional amending budget that the Government will adopt on 19 March.

Providing specific information and advice
Other

Measures by Riksbank (the Swedish Central Bank). Given that Sweden is not part of the euro area, measures talen by the Riksbank are of utmost importance for the Swedish economy and are of interest for SMEs' access to finance. Riksbank will increase asset purchases and take measures to facilitate credit supply
To provide support to economic development, the Executive Board of the Riksbank has decided on a package of measures (EN):

Increase purchases of securities by up to SEK 300 billion this year. If necessary, the purchases will include government, municipal, and mortgage bonds. More precise details will be decided by the Executive Board shortly. The purchases of government bonds will be initiated immediately.
Reduce the lending rate for overnight loans to banks from 0.75 to 0.20 percentage points above the repo rate. The repo rate remains at zero per cent.
Offer banks to borrow an unlimited amount of money weekly against collateral at three months’ maturity at an interest rate of 0.20 percentage points above the repo rate.
Increase flexibility with regard to the collateral banks can use when they borrow money from the Riksbank, which will, among other things, give banks more scope to use mortgage bonds as collateral.

The measures were taken at an extraordinary monetary policy meeting Tuesday 17 March. The Riksbank is prepared to take further actions and supply the necessary liquidity, even between the ordinary monetary policy meetings. All the Riksbank’s tools can be put to use. The measures have been met with broad support.