State Aid Measures for Companies in the COVID-19 Crisis

In response to the COVID-19 crisis, the government created instruments to support businesses, which were continuously adapted. Based on the survey sample of the COVID-19 special survey of the WIFO-Konjunkturtest (business cycle survey) of February 2022, we analysed the affectedness, liquidity constraints, use and assessments of the impact of support measures for businesses in the fourth wave of the COVID-19 pandemic. The results show that although the majority of firms reported significant disruptions in their business activities over the past three months, liquidity assessments have worsened only slightly compared to August 2021. This is also likely to be attributable to the effect of the government aid measures, as the take-up of aid is especially high in the branches heavily affected by COVID-19 and by firms with liquidity constraints. The assessment of the instruments is especially positive for companies that report having used the aid. However, companies that continue to face liquidity constraints are more likely to rate the instruments as helpful but insufficient or as not helpful. Overall, the study results suggest that the government measures were effective and targeted, that no systematic misallocation is likely to have taken place and that they had the desired effects. Companies are being supported so that they can better weather the crisis. However, companies with liquidity constraints continue to face difficulties.