Freelancers whose revenues are melting due to the coronavirus crisis should get support from the Confederation. The volume of guarantees will be increased. The Federal Council, on the other hand, does not want to lose funds.
The government decided on Wednesday to extend aid measures aimed at the economy. It focuses on quick and targeted solutions rather than general compensation, in order to manage a crisis that will last for several months.
The Federal Council has therefore instructed the Federal Social Insurance Office, in collaboration with the Federal Finance Administration and the State Secretariat for Economic Affairs (SECO), to define solutions for the self-employed within a week. They are not currently entitled to allowances for loss of earnings, unlike other categories of entrepreneurs.
Additional credit
The amount of CHF 20 billion, allocated to requests for transitional loans from companies experiencing liquidity problems, will be increased. The Federal Finance Administration has until Friday to submit an additional credit. It must also put in place a procedure against abuse in the use of these credits.
The Federal Council also wants to assess measures for travel agencies and the cultural and sports sectors. It is also looking for additional instruments to prevent viable start-ups from finding themselves in insolvency because of the pandemic.
Not lost
For the government, however, it is “impracticable” to grant all compensation in the form of contributions to lost funds. The capacities of the federal and cantonal implementing bodies have already reached their maximum. It will be difficult to prove and verify the damage suffered in light of the hundreds of thousands of potential claims.
Paying large-scale subsidies without requiring proof of the damage suffered would pose too great a risk to the public authorities and would jeopardize the stability of the state budget
The Federal Council may decide to extend the measures put in place or to increase the means made available. It also intends to assess the medium and long-term economic consequences and develop a strategy for the period following the relaxation of health measures.
Measures to guarantee the food supply
The Federal Council wants to guarantee the food supply of the population. He took action on Wednesday. He also frees three million francs to support the butchers. The aim is to prevent a fall in meat prices on the markets.
The government has decided to relax the provisions for controls on imported food. In the current situation, they cannot be fully insured, neither in Switzerland nor abroad. This is to ensure supply by avoiding further burdensome reporting procedures. The sector will also be able to react quickly in the event of difficulties.
In addition, the partial tariff quota will be increased for eggs for consumption. The Federal Office for Agriculture may also temporarily increase the quotas for the production of Swiss butter. For the first time in years, this should not be enough to cover the needs of the market.
Temporarily modified asylum procedures
The Confederation temporarily changes the asylum procedures because of the Covid-19. The time limits for appealing and executing removals are lengthened. The accommodation capacity will be able to increase more easily so that the distance rules are respected.
The Federal Council took measures on Wednesday to protect the health of all those involved in the asylum procedure. Protection against coronavirus infections has top priority.
The government still refuses to stop the procedures as requested by associations active in the asylum field. The procedures must continue to be conducted so that Switzerland can fulfill its international commitments, justifies the executive.
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