October 23, 2020

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Impact of the six-month corona crisis on the economy: “It seems calm before the storm.”

Impact of the six-month corona crisis on the economy: "It seems calm before the storm."

The rescue package has also been extended for a further nine months. Although some austerity measures have been implemented. “It’s a driving skill for the cabinet,” says Van Geest. “You can’t give companies subsidies forever, but you don’t want companies to fail too quickly either.”

By and large, the package does what the government is supposed to do, she says. “The blow was absorbed first. And now that it’s taking longer, the cabinet adjusts the dimensions.

The bankruptcy figures also show that many companies are kept afloat by the support measures: Fewer companies went bankrupt than last year, when the economy was still doing very well. This means that companies that would probably have gone bankrupt without Corona will now also be kept afloat by the aid package.

Too much rather than too little, says Blom. “The amounts the cabinet is spending now are manageable. And if you continue to provide support, you will not have destroyed everything you will need later, with all the human pain that goes with it.”

Here’s how severe the economic blow was, how many companies have gone bankrupt, and how some hard-hit sectors have been hit: