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Emergency Covid funds saved 35,000 Swiss companies

Shuttered shop front with mannequins
Many retail stores were forced to close during the pandemic. Keystone / Gian Ehrenzeller

Switzerland’s CHF5.3 billion hardship payments saved up to 35,000 companies from collapse during the Covid-19 pandemic and resultant lockdowns. 

The Federal Audit Office drew a largely positive conclusion of the funds but found some inefficiencies.

+ How the Swiss economy is faring

Some of the hardship measures were too high or unnecessary compared to the need, the audit found. In addition, there was unequal treatment between industries and between companies within an industry.

By focusing on company sales for compensation, preference was given to companies with high sales losses but low fixed costs. Financial control was critical of the easing of access for companies that were ordered closed. 

As a result, companies that were hardly affected also received aid money, for example because of other sales channels such as online shipping and take-away.

For future aid, auditors suggest, among other things, the possibility of reclaims in cases where the support is too high.

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