Ljubljana – Finance says on Monday that true picture of the economy will soon show as subsidised furlough and monthly universal basic income expire at the end of June being probably one of the two key state measures to fight the consequences of the Covid-19 epidemic. There are some concerns, which is understandable, it adds.
The state’s covering the costs of furloughed workers was certainly one of the measures that has prevented “panicky” lay-offs in the private sector and has been useful.
“Of course, now that it is running out, some ill will and concern could be detected, which is understandable,” Finance adds under the headline End of Aid, Start of Normality, but Also More Uncertainty.
The business newspaper says that the end of subsidised furlough could increase unemployment and get companies in trouble, and that this will show relatively quickly, and the true picture of the economy will be revealed.
This picture has been rather blurry in the past year – despite the lengthy lockdown, the number of bankruptcies was small, and unemployment has not skyrocketed. “What will happen when there will be no state support for real?”
Various institutions, including the European Central Bank, have been warning for a while about the increasing number of bankruptcies, which means more unemployed people and potential problems for banks.
“The bleakest scenarios that have been presented by various institutions in the past year have fortunately failed to materialise. Let’s hope that this stays so,” concludes the commentary.