Government awarded good marks for economic aid packages
The Liechtenstein Institute has issued the government with a good report card for its coronavirus support measures. According to the institute, the economic aid packages were targeted correctly and successfully delivered.
On behalf of the Ministry of Infrastructure, Economic Affairs and Sport, the Liechtenstein Institute has assessed the support measures put in place as a result of the coronavirus pandemic. The results reveal that the measures were both “effective and efficient”, the Liechtenstein Institute writes in its report.
The package of support measures put in place by the government of Liechtenstein above all comprised bridging solutions for short-term liquidity problems, short-time working hours and direct grants in the form of fixed-cost contributions, in addition to measures aimed at supporting individual enterprises and micro-businesses. The measures were adopted rapidly and correctly targeted, the Liechtenstein Institute states. Surveys conducted by the institute also reveal that the measures were implemented successfully, with the majority of companies assessing them positively as a result.
According to the report, the measures implemented in Liechtenstein were similar to those put in place by other central European countries in the spring. Nevertheless, the volume of financial aid is lower than in neighboring countries such as Switzerland, Austria and Germany. The reason given for this is that economic stimuli have already been added to the support measures in these countries. In Liechtenstein, however, economic stimulus measures are only partially effective due to the fact that demand for goods from Liechtenstein primarily comes from abroad. At the same time, domestic consumption in Liechtenstein is predominantly made up of foreign goods.
“Despite the small-scale macroeconomic leverage of the measures aimed at stimulating the economy, further support measures should not be ruled out, especially with regard to aid for cases of hardship”, the Institute concludes in its press release.
The study conducted by the Liechtenstein Institute relates to the period between March and June 2020.