How are other nations addressing this very burning issue – amongst many at the COVID 19 moment? Yes, each country’s facts and the ground situation will be different. Yes, one size cannot fit all. Yes, we need to draw reference to what is happening around us and write our own path for supporting businesses and industries particularly MSMEs.
Germany
An article on The Coronavirus Crisis is titled “Nearly Half A Million Companies In Germany File For State Funds To Pay Workers” written on April 1, 202011:50 AM ET by ROB SCHMITZ.
Some key extracts are given below:
In Germany, nearly half a million companies have applied for government funds to support employees with reduced work hours, as the country with the largest economy in Europe pushes to contain the new coronavirus. Heavy restrictions on public life, an export slump because of nations' lockdowns and broken supply chains throughout the industry have meant millions of Germany's workers are eligible for public financial aid.
Known as Kurzarbeit, the government's compensation program allows firms to reduce employees' hours while the state provides much of the lost income, a cushion meant to help them avoid layoffs. Twenty times more companies have filed for the Kurzarbeit to help deal with coronavirus reductions than the number that used the federal subsidy during the global financial crisis a decade ago.
Canada
A couple of quotes show what the Canadian government intends:
“Small businesses are the backbone of our economy and an important source of good jobs across this country. They are facing economic hardship and uncertainty during the COVID-19 pandemic, and that is why we are taking action now to help them get the financial help they need to protect their workers and pay their bills.” The Rt. Hon. Justin Trudeau, Prime Minister of Canada, Read more…
“The measures that we are taking to protect Canadians and our economy from the impacts of the COVID-19 pandemic remind us that extraordinary times demand extraordinary actions. With the new measures we are announcing today to support businesses, we are showing once again that we will do what we must to ensure that workers and businesses are supported through the outbreak and that our economy remains strong in the face of adversity.” The Hon. Bill Morneau, Minister of Finance
This is part of our ongoing article series on The COVID19 Impact on Indian Business, and we look forward to your feedback and comments.
