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Switzerland does not plan large-scale economic stimulus programme because of “Covid-19"

The Swiss government is not planning a large-scale programme to boost the economy because of the coronavirus. This was stated today by a senior official, quoted by Reuters.
The Swiss government is working on the issue of direct support for companies affected by the decline in demand because of the epidemic

The head of the State Secretariat for Economic Affairs Marie-Gabriel Innaichen-Fleisch told Swiss television Ef that it is important not to resort to some kind of non-traditional monetary policy, “subsidies or an economic program that works (only) in the long term, but not in the short term.” The Secretariat shall coordinate the economic and labor policy of the Government.

Government subsidies paid to employees with shortened working hours by their employers have shown themselves to be an effective economic stabilizer, she said.

The government is trying to shift its support to companies, such as ones that organise events likely to be most affected by government restrictions, including a temporary ban on events attracting over 1,000 people, BTA writes.

Inaichen-Fleish said supply chains were still functioning and companies' stocks were good, but she warned the situation could change depending on the spread of the virus that has claimed one person's life in Switzerland so far.

The situation will leave traces in our economy, we don't know how deep yet, she said.

When asked about calls for the central bank to take measures against the ever-increasing economic consequences, she replied that the central bank was independent and would make its own decision.


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