State Aid Measures for Companies in the COVID-19 Crisis

In response to the COVID-19 crisis, the government has put together a package of measures to support the economy. This report analyses the utilisation and effectiveness of the instruments used at the company level in a timely manner on the basis of three special surveys conducted as part of the WIFO-Konjunkturtest (business cycle survey). The analysis shows that the majority of surveyed companies are severely affected by the crisis. The assistance is largely considered helpful, although differences in the assessment between the measures also become apparent. Those companies that describe the support as insufficient report mostly low liquidity reserves and tend to be more at risk of financial distress. Based on the available evidence, possible deadweight and misuse effects are discussed.