Casa calls for contingency measures to help SMEs impacted by coronavirus

“SMEs are the backbone of our economy and as a result of their small size, they may be less able to withstand economic shocks of unknown duration such as the one we are facing right now due to this virus outbreak. Contingency measures should be in place to assist these companies in the event of such disruption. Such measures should be triggered as soon as they become necessary”.

This was stated by European Parliament Quaestor David Casa, who pointed to the German model where in the event of unforeseen economic shocks companies have the possibility of retaining staff by having them work on reduced hours while the state compensates for the difference in salary.

“These short-term work subsidy schemes can be instrumental to prevent layoffs while ensuring that SMEs have the support they need to make it through a crisis. Measures should not be limited to such schemes. Particular sectors, such as tourism, that are likely to be hit harder and might require more targeted assistance. We must not be complacent in assessing the measures at our disposal and putting additional measures in place”, stated MEP David Casa.

Casa is the European Parliament’s lead negotiator on the ESF+. This fund is the European Union’s main tool in the field of employment, training and social inclusion with a budget of around €100bn for the period 2021-2027. 

“The health of our citizens must be our first priority. It is however also our duty to start preparations to address the financial and social impact of the coronavirus. We are looking at the changes that can be made to the application of EU structural funds and how unspent funds can be redirected. But we must also take the necessary steps at national level to limit the consequences of the coronavirus”, stated Casa.