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With the rapid implementation of the Covid-19 law in the autumn session of 2020, the Swiss Parliament created a legal basis that will ensure the survival of many companies. This also included hardship assistance for particularly affected sectors: This primarily included gastronomy, hotels, travel, air transport, culture/leisure and entertainment.
Nearly 35,000 companies received support, the Swiss Federal Audit Office (SFAO) reported today. The majority of this took the form of À fonds perdu contributions. Almost half of the aid went to the catering and hotel sector. Other relevant shares went to companies in wholesale and retail trade and the travel sector.
A survey conducted by Financial Control shows that the aid provided a significant boost and had a positive impact on the majority of companies surveyed. But there were also critical undertones: EFK found in an evaluation that some hardship measures were too high or unnecessary compared to the need. In addition, unequal treatment existed between sectors and between companies within the sector, partly due to different cantonal interpretations.
Focusing on company sales as compensation, companies with high sales losses but low fixed costs were preferred. These included travel agencies, which lost an average of 92 percent of their sales. The financial controller also criticized the issue of facilitating access to companies closed by order. As a result, companies that were not as affected also received relief money due to other sales channels, such as online shipping and takeout.
Possibility of retrieval
For future aid, SFAO suggests, among other things, the possibility of reclaiming where support is very high. Furthermore, the purpose of financial aid should be clearly formulated, approval criteria should eliminate excessive aid, and a rapid public sector response should be of central importance. According to financial control, full coverage of out-of-scope costs is not required because the cost-benefit ratio remains the same as scope increases.
Finally, the SFAO also sees a problem with federalism and recommends developing principles for the distribution of costs between the federal government and the cantons in the future. The combination of strong federal enforcement and a high share of federal funding is “negative.” If most of the burden is undertaken by the federal government, there is a risk that cantons will not be able to use financial resources efficiently.
Economic aid of approximately 50 billion francs
Hardship benefit came into force in December 2020 and was a supplement to existing benefits such as short-time work or Corona income compensation compensation. The cantons were responsible for implementation. They decided whether to take measures in their area and how to specifically design them.
The coronavirus, which emerged in Switzerland at the beginning of 2020, caused the biggest crisis in the country since the Second World War. The Federal Council declared a temporary state of emergency. Authorities took drastic measures to prevent infections. The closure of shops, restaurants, museums, sports facilities and cultural institutions has brought all sectors of the economy to an almost complete halt. At the same time, the federal government has launched an unprecedented aid program: so far it has pledged or promised nearly 50 billion francs in economic aid alone. (SDA/rae)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
