Coronavirus: this is to be expected from the special session: a prognosis

6 stores, 6 predictions: what will happen in the Corona session

For the first time, it is Parliament’s turn in the crown crisis. The Federal Council’s emergency measures are likely to be largely approved. However, there are likely to be deviations in detailed questions.

Extraordinary times require extraordinary measures. For example, the National Council and the Council of States cannot hold the special session on the crown crisis until Thursday in the usual way. Conditions in the parliament building are too strict. So dodge the BernExpo exhibition halls, where you can observe the rules of distance.

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For the first time since the Fall 2006 session in Flims GR, Parliament meets outside the “sacred rooms” of the Federal Parliament. And it is certain that the June summer session will also take place at BernExpo. Then “regular” matters will be back on the agenda, because in a special session the councils deal exclusively with the consequences of the crisis.

For the first time, Parliament can speak about the emergency measures taken by the Federal Council to combat the coronavirus. These are extensive, which affects the session schedule. The preparatory committees have adopted more than 40 proposals, with additional demands on the Federal Council. What specifically can you expect?

In principle, Parliament will confirm the line of the Federal Council. Demands for a faster loosening of the blockade will stand no chance, because the Federal Council effectively took its breath away with the accelerated opening on May 11. The largest partial mobilization of the army since World War II is hardly disputed.

The most important part is the loan for a total of CHF 55 billion. Much of this comes from federal guarantees for bank SME loans. Wide approval is foreseeable here as well. The SVP’s proposals to reduce the loan for the acquisition of medical supplies and abolish emergency aid for cultural workers are unlikely to be successful.

If necessary, Parliament will increase support for tourism. It has been generously demonstrated in this area in the past. Intense debates are foreseen on some points, because the opinions of the Federal Council and Parliament diverge:

Day care centers

Childcare is a big problem in times of home office and home schooling. The Federal Council has classified daycare as systemically important, but only for children of parents who do systemically important work. This has serious consequences, as the NZZ reports: “70 percent of Swiss nurseries survive a maximum of three months without financial aid.”

Those who cannot bring their children to daycare often no longer pay the fees. However, the Federal Council is against financial support. He wants to hold the cantons and communes accountable. The education commissions see it differently. The National Council commission requires 100 million Swiss francs for kindergartens, the Council of States commission 65 million.

Forecast: The help of the nursery arrives, probably in the variant of the Council of States.

Loans

Bank loans to SMEs are a double-edged matter. They help with short-term liquidity shortages, but many companies fear falling into the debt trap. Various approaches require that the loans be guaranteed not only for five but for eight years and that they generally do not earn interest. The Federal Council rejects both measures.

Forecast: Down payments are accepted.

Media

Federal President Simonetta Sommaruga wanted to support the crisis-affected media with 78 million Swiss francs, according to the weekly. She ran on the Federal Council. The transportation and telecommunications commissions are now requesting immediate help for the Keystone-SDA news agency and the delivery of newspapers, among others. The Federal Council does not want to know anything about it.

Forecast: The proposals are rejected because the Federal Council adopted a package of measures to support the media anyway last Wednesday.

Dividends

A hot topic is the question of whether companies that have applied for short-term jobs can distribute a dividend. The Social Commission of the National Council wants to avoid this with a motion. The Federal Council rejects them because of fundamental considerations (the emergency law is not applicable in this case) and because short-term compensation is an insurance benefit and not a subsidy.

Forecast: The dividend ban fails because of the bourgeois majority on both boards.

Rental

Many store and restaurant operators complain that they have to pay full rent for their locations, even though they barely generate sales. Therefore, the Economic Commission of the National Council requires that closed companies owe the owner only 30 percent of the rent. The “sister commission” of the Council of States has different ideas.

With a motion, she demands that smaller companies give up rent entirely for two months. The federal government must pay a maximum of one third of the rent to larger companies during this period if there is an agreement between the tenant and the landlord. The Federal Council is against these demands. He is only willing to extend the pay period.

Forecast: A relief for tenants is itself capable of a majority. However, the real estate industry is likely to lobby massively, so approval remains questionable.

Aviation

A difficult debate is expected on the commitment of 1,275 million Swiss francs for Swiss airlines and Edelweiss. Leftists and Greens want to link it to climate protection measures, for which they have found a majority in finance committees. Another 600 million francs will go to flight related companies like Gategourmet and Swissport.

Forecast: The loans are being approved, but there will be only non-binding requirements for climate protection. The Greens and the climate strike movement are already threatened with a referendum.