Some European countries at the end of July, planning to stop paying compensation to employees who temporarily could not work due to pandemic coronavirus. The program helped to preserve jobs, its abolition would hit the economy with a new force, according to Bloomberg.
Undo the benefits you want, like in Portugal. The representatives of the services say their business closer to the edge, if the payments stop. They will have to cut many employees, this will lead to unemployment and, ultimately, affect the solvency of buyers.
France is preparing a new scheme of job protection, which is designed for a maximum of two years. However, this may not be enough, says the Agency, because the demand will not soon recover. The French statistical data of the company Insee show that the activity in the second largest economy in Europe is still 10 percent below normal. For companies, especially small, this figure is significant. Because of the small margins they risk to be closed. This will further hit the already devastated economy.
In the UK, according to the survey, a quarter of employees could lose their jobs when the government will begin to reduce subsidies. Many economies across Europe have suffered from the decline of production in 2020. The biggest losses are expected in this quarter.
the German Government has promised to spend as long as necessary to resume economic growth in the country, including to extend the program of subsidizing wages. Germany has already allocated 130 billion Euro bailout is the biggest programme in Europe.
In June, the European Central Bank (ECB) announced a quantitative easing 1.35 trillion euros, under which it will buy up government and corporate bonds. The Commission also discusses the creation of a long-term Foundation for the economic recovery of Europe with a volume of 750 billion euros, but yet to reach an agreement on this issue failed.