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Elena S. Gabbani

23 June 2021
Economic Bulletin Issue 4, 2021
European governments responded to the pandemic by deploying large fiscal packages with the aim of supporting households, workers and firms. The October 2020-March 2021 SAFE shows that around two-thirds of large firms and SMEs surveyed made use of government policy support measures. Most firms used these schemes, particularly in the form of wage support measures, tax cuts and tax moratoria, to cover their immediate and short-term liquidity needs. Firms also indicated that government measures either currently in place or planned would make it easier for them to meet their debt obligations in the next two years. This demonstrates how government policies have been key to easing the liquidity needs of firms in the short and medium term following the outbreak of the pandemic.
JEL Code
D22 : Microeconomics→Production and Organizations→Firm Behavior: Empirical Analysis
H32 : Public Economics→Fiscal Policies and Behavior of Economic Agents→Firm