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Corona Difficulty Cases
The federal government prepares a new mega aid package: at least one billion francs for companies in crisis
Research shows: Finance Minister Ueli Maurer is now ready to raise much more than the 200 million francs originally planned to deal with hardship cases. Some cantons have long called for a significantly higher level of commitment.
Gastronomy, in particular, depends on more state aid. Now the finance department wants to talk about a billion for difficult cases.
The fear is great. This is how the president of the trade association, Fabio Regazzi, describes the mood among its members amid the second crown wave. Most SMEs still have reservations if things continue like this, but they will quickly disappear, he said in a recent interview with CH Media.
Therefore, the state is under pressure to help the economy again, at least where it is not already doing so. In itself, Parliament installed support for cases of economic hardship as a new instrument in September with the Covid-19 law. But at the time the second wave was hardly a problem. Initially, the federal government and the cantons only allocated 400 million Swiss francs for hardship cases. Both would have contributed 200 million each.
Meanwhile, Finance Minister Ueli Maurer called for restraint. Last week, he said in a warning tone that the federal government couldn’t save every business.
But even then it was clear to the SVP Federal Council that the 400 million would not be enough. Now it becomes clear that you are taking a lot more money in your hands. This is demonstrated by the research of CH Media. “The finance department is willing to speak more than a billion francs”, it is said from circles close to the Federal Council.
In himself, Finance Minister Ueli Maurer no longer wants to spend as much money as he did during the first wave. But now he is forced to act.
In general, the attitude of the finance minister is a surprise. His statement at his party’s delegates meeting almost three weeks ago quickly gained notoriety: a second time Switzerland could not afford such a high level of financial commitment: “We don’t have another 30 billion,” Maurer said.
Now he seems ready to at least selectively expand federal financial aid. Pressure from the cantons is likely to play a role.
Basel government adviser Christoph Brutschin went on the offensive last week. He could imagine an amount of a billion francs. Brutschin’s word carries weight. He is president of the Cantonal Directors of Economy.
Most cantons want more federal funds
Now Brutschin says: “A clear majority of the cantons are asking for a substantial increase of 400 million Swiss francs.” Draw this conclusion from the cantons’ initial comments. Today, Friday, the unprecedented brief consultation on the hardship ordinance expires.
Zug CFO Heinz Tännler follows a very similar line. In view of the second wave, your canton is proposing to increase the federal contribution from CHF 200 million to CHF 800 million. Depending on how the allocation of costs is regulated between the federal government and the cantons, the total amount would quickly be a billion or more. Zurich’s CFO Ernst Stocker is also reportedly in this field.
The eastern cantons of Switzerland are reluctant. You want government councilor Beat Tinner
The eastern cantons of Switzerland are somewhat more reserved. St. Gallen, for example, requires the amount to be increased from 400 million to 800 million Swiss francs, says chief economics officer Beat Tinner. The cantons should continue to assume half of this. This is also the attitude of most other eastern Swiss cantons, says Tinner.
In addition to money, now there is also a dispute on the question of cost allocation. Many cantons no longer want to know that costs are split evenly between the federal government and the cantons. However, this requires an amendment to the Covid-19 law that has just been approved by parliament. “The law should be changed in such a way that the cantons, for example, still have to contribute a third or a fifth of the costs,” says Zug CFO Heinz Tännler. “With the 50/50 solution, the finances of many cantons got too in trouble.”
“The Canton of Bern cannot do that”
This is exactly how Berne’s government adviser Christoph Ammann argues. He asks the federal government to bear 80 percent of the costs and the cantons 20 percent. When asked if Bern is only interested in paying less, Ammann said: “Effective regulation for economic hardship in the canton of Bern would cost a triple digit amount in millions.” The canton of Bern could not do that, said the economic director of the newspaper “Der Bund”.
Interestingly, Brutschin and Stocker have also come out in favor of an 80:20 cost allocation. Parliament has the last word on this matter. It is expected to lean over the store in the winter session. This starts at the end of the month.
Among the Federal Council parties, only the SP has so far given a specific number for cases of difficulty. Calls for federal aid to be increased to at least one billion francs. Cantons must provide a minimum of the specified contribution of 200 million Swiss francs, the party wrote in a statement yesterday.
