Overview of Measures to Mitigate the Negative Economic Effects of - PowerPoint PPT Presentation

Overview of Measures to Mitigate the Negative Economic Effects of the Coronavirus Crisis by European and Middle Eastern Countries As of 20 March 2020, 6:00 PM CET

Europe 2

European Union AIM Supporting EU Member States Proposal to alleviate airlines from the requirement to use at during the economic and health Measure 1 least 80% of their airports slots to keep them for the next crisis. year. [Announced] European Fiscal Framework Flexibility: Measure 2 Loosening of the EU budget rules allowing budget deficits START DATE and greater state aid. Measure 7: After the approval of the European Parliament and the Supporting and guiding the Member States on how to Measure 3 Council. secure the free movement of goods and services. Measure 8: 16 March 2020 [Announced] Finalizing of a European Unemployment Measure 4 Reinsurance Scheme. VOLUME EUR 916.179 billion Measure 5 Provision of capital relief to banks from the European Central Bank. APPLICATION PROCESS Pandemic Emergency Purchase Programme: expansion of Measure 6 the ECB’s asset purchases to cover sovereign bonds and Application by each Member State corporate debts. to the competent institution. 3

European Union Coronavirus Response Investment Initiative developed to Measure 7 financially support Member States. Reduction of the notification threshold for net short Measure 8 positions that reached or exceed 0.1 % of the issued share capital. 4

Albania AIM Support citizens and limit the Businesses and individuals can postpone their credit economic impact Measure 1 payments for three months. [Pending] Postponements for financial reporting’s, the filing START DATE Measure 2 and payment of taxes and the elimination of all fiscal Not established obligations. VOLUME Not established APPLICATION PROCESS Not established 5

Austria AIM Maintaining the liquidity of the Credit guarantees, bridging loans, tax deferrals, reduction affected companies, protecting Measure 1 of advance tax payments and strengthening and employees and financial market. accelerating export promotion. START DATE Measure 2 Short-time work model with accelerated procedures. 15 March 2020 Measure 2: 1 March 2020 Partial income subsidies for special leave of childcare Measure 3 purposes. VOLUME Support model for the tourism industry containing bridge EUR 38 billion Measure 4 financing and the cost coverage for the handling fee (1%) and the liability fee (0.8%). APPLICATION PROCESS Hardship fund of up to EUR 1 billion for small enterprises, Measure 5 Application for a reduction of one-person enterprises, and non-profit organiations. income tax payment until September 2020 [Under discussion] Time period to file for insolvency to be Measure 6 120 days instead of 60. 6

Austria Measure 7 [Under discussion] Continued payment of employee wages. Measure 8 [Under discussion] Deadlines interrupted util 30 April. [Under discussion] Shareholder meetings without physical Measure 9 presence are permissible. Ban on short-selling on the Vienna stock exchange in force Measure 10 until 18 April 2020. 7

Belgium AIM Temporary unemployment due to force majeure or Maintaining the liquidity of the economic reasons. Temporary unemployment benefits will affected companies and saving Measure 1 comprise 65 % of the salary and not more than approx. jobs. EUR 2,790. Measure 2 START DATE Suspension of loan repayments. 6 March 2020 Measure 3 Lower access for companies to borrow money. VOLUME EUR 1 billion Payment plans for employers’ social security contributions, Measure 4 VAT, withholding tax, and income/corporate tax. APPLICATION PROCESS Reduction of tax prepayment for self-employed persons, Please see corresponding Measure 5 and postponement/exemption from payment of social document. security contributions. Measure 6 Entitlement to replacement income for self-employed persons. 8

Belgium Flexibility in the performance of federal government Measure 7 contracts. [Announced] Broad macroeconomic insurance to alleviate Measure 8 second round effects. Measure 9 Ban on short selling from 17 March to 17 April 2020. 9

Bulgaria AIM Strengthening of the local [Under discussion] In case of temporary unemployment, the economy, especially SMEs and Measure 1 government plans on financing 60 % of the employees’ supporting workers salaries. [Under discussion] Deferment of credit payments for Measure 2 START DATE companies. Not established. [Under discussion] Increase of the capital of the Bulgarian Measure 3 Development Bank with approx. EUR 256 million. VOLUME Not established APPLICATION PROCESS Not established. 10

Croatia AIM Strengthen the economy and Deferment of public contributions, including income and protection of citizens Measure 1 profit taxes and contributions on wages, for a period of three months plus, if need be, another three months. Measure 2 START DATE Interest-free loans. 17 March 2020 Three-month suspension on liabilities to the Croatian Bank Measure 3 of Reconstruction and Development and commercial VOLUME banks. EUR 65m Greater access to loans in order to pay wages, utility and Measure 4 operating costs; and the provision of microloans. APPLICATION PROCESS Unconditional extension on the duration of projects which Not established. Measure 5 were to be completed in March, April or May. Stabilization of the exchange rate and ensuring foreign Measure 6 currency liquidity. 11

Cyprus AIM Boosting business liquidity and EUR 100 million to employ additional medical, nursing and securing jobs. Measure 1 support staff. Measure 2 Temporary suspension of VAT payments. START DATE After promulgation of legislation Temporary reduction of VAT from 19% to 17% over a two- Measure 3 month period and from 9% to 7% over a three-and-a-half VOLUME month period. EUR 700m Measure 4 Deferment of tax statements until the end of May. APPLICATION PROCESS Not established. EUR 11 million to support the tourism sector. Measure 5 12

Czech Republic AIM Mitigate the economic downfall for companies of all sizes and private Measure 1 Interest-free loans. households. Measure 2 START DATE Cutting key interest rates to 1.75%. 16 March 2020 Declaration of a state of emergency: Closing of all schools Measure 3 and restaurants. Enforcing strict travel restrictions. VOLUME EUR 36m Administrative order of a national quarantine, only allowing Measure 4 citizens to leave home for work, supermarkets, the hospital or other urgent visits. APPLICATION PROCESS Not established. 13

Denmark AIM Support the local economy and secure jobs. Measure 1 Financial compensation for the cancelation of major events. START DATE Two new loan guarantee schemes for large companies and Measure 2 9 March 2020 SMEs. 75% coverage of employees’ salaries in case of temporary VOLUME Measure 3 reduction in working hours. EUR 13 billion Measure 4 State-backed credit guarantees for SAS airline. APPLICATION PROCESS Not established. 14

Estonia AIM Supporting the local economy and Financial support for local companies through the KredEx the working people. Measure 1 Foundation and the Estonia Rural Development Foundation. Labour market support through the Estonian Measure 2 START DATE Unemployment Insurance Fund. Not established. Sickness benefits from March to May; compensation for the Measure 3 first three days of sick leave. VOLUME EUR 2 billion Measure 4 Tax incentives, including deferral of tax debt for 18 months. APPLICATION PROCESS Not established. Partial compensation of direct costs of cancelled events. Measure 5 15

Finland AIM Easing the financial impact of the virus on businesses and Measure 1 Extra spending on healthcare. households. Measure 2 Support of companies. START DATE 18 March 2020 Measure 3 Deferrment of corporate tax payments. VOLUME EUR 5 billion Measure 4 State Pension Fund will buy commercial paper. APPLICATION PROCESS Government will increase Finnvera Oyj’s capacity to Not established. Measure 5 guarantee loans. 16

France AIM Supporting small companies and Direct tax breaks for one month of deferred corporate taxes preventing of the shutdowns of Measure 1 and reduced social security charges for small companies. companies Measure 2 START DATE Unemployment benefits for workers working short-time. Measure 6: 17 March Measure 9: 18 March Measure 3 Solidarity fund for the self-employed and the shopkeepers. VOLUME Measure 4 Granting bank loans to businesses to ensure liquidity. EUR 390.5 billion [Announced Measure] Recapitalization of important French APPLICATION PROCESS Measure 5 companies, buying their shares or taken them over if necessary. Not established. Measure 6 One day ban on short selling for 92 stocks. 17

France Government control of face-mask production and price of Measure 7 hand sanitizers. Measure 8 Aid packages for small businesses. Measure 9 Ban on the creation or increase of new net short positions. 18