DISCUSSION ABOUT THE ECONOMIC MEASURES OF THE GOVERNMENT FOR DEALING WITH THE CORONAVIRUS CONEQUENCES
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DISCUSSION ABOUT THE ECONOMIC MEASURES OF THE GOVERNMENT FOR DEALING WITH THE CORONAVIRUS CONEQUENCES

The Foreign Investors Council held an online Management Board session

The Foreign Investors Council within the Economic Chamber of Macedonia adapted its activities to the state of emergency through the application of sophisticated digital technologies. On 07/05/2020, the Management Board held its first online session.

The main point of discussion was the economic measures introduced to tackle the COVID-19 consequences, as well as the issue of whether the situation might worsen.
Likewise, in conditions where the developments related to the coronavirus severely afflicted the large global economies, it is logical to expect that the small economies, such as Macedonia, will suffer undesired consequences.

Considering the fact that the coronavirus and the measures undertaken to prevent its spread would inevitably lead to a slowdown of the economic activity, most of the companies, including the large industrial capacities, will suffer huge operating losses. How will the foreign investors continue to work successfully in such conditions will certainly depend on the very companies and their potential to carry out suitable production reorganization, due to the reduced demand, but also on the state support, to recover faster and weather the consequences of the crisis more easily.

One thing that is of special importance to the companies (especially the large companies in the area of production and services), but also to the entire economy, is the fact that the companies are using every possible option to retain their employees, that is, avoid layoffs. However, in order for the companies to maintain this in the upcoming period, in conditions of reduced production and reduced exports, even cuts of the non-productive expenses, state measures would be certainly welcome, ones that aim to preserve the company liquidity. This stems from the fact that the contribution of the large industrial capacities – members of the Foreign Investors Council – to the national economy is enormous. The support for the large companies, not only foreign, but also domestic, would help overcome the crisis faster and heal the economy, considering the contribution of the large number of employees.
With regard to the indications of the foreign companies, the Council will continue to forward the open issues regarding the implementation of the specific measures in the upcoming period, as well as the proposals for defining measures that will assist the companies to deal with the current developments. The most important issues pointed out at the Management Board session are as follows:

-    The economic measures of the Government that aim to support the economy deal with the COVID-19 consequences should not cover the entities that participate in the grey economy and undermine the competitiveness of the entire economy and at the same time, undermine the integrity of our whole tax system;
-    Stronger institutional cooperation between the private sector and the institutions of the system, and intensification of the mutual coordination, aiming to jointly curtail the economic implications for the Macedonian economy;

Support for the companies from the various economic sectors that submit proposals and initiatives to jointly weather the current challenges more easily and to save the economic activities that have been variously afflicted by the current situation.

 

Chamber Informational department