COVID-19 Crisis: International Economic Policy Responses

New Article by Atanas Pekanov in WIFO-Monatsberichte (monthly reports)
Most EU countries have reacted quickly to the negative economic impact of the lockdown measures to contain the COVID-19 pandemic in an attempt to limit the economic shock as much as possible.

Among the many economic policy measures announced are liquidity support for businesses in the form of loans, tax deferrals or tax reductions and non-repayable support payments, support for households currently suffering from unemployment, loss of income and great uncertainty, and support for particularly hard-hit sectors. In addition, there are funds for certain government activities and areas, such as the health system or research.

Austria, too, defined an ambitious aid package by international standards to cushion the economic turbulence. Particular importance is attached to the short-time working model and the massive liquidity support for companies, which, as in most other countries, are a central component of the economic policy response to the crisis.

The article is available free of charge in May 2020.