Money Buzz! Europa

Tag: business

  • Poland to aid Covid-19 affected companies with another USD 9,5 bln

    Poland to aid Covid-19 affected companies with another USD 9,5 bln

    The Polish government wants to launch a new support package worth 35 billion zlotys ($ 9.5 billion) for companies that have suffered from the partial quarantine introduced in the context of the latest pandemic wave, DPA reports.

    The aid will be targeted mainly at companies that were ”particularly affected by the virus in October, November and December” and has already received European Commission approval, Prim Minister Mateusz Morawiecki says.

    Poland has reimposed a number of measures to combat the pandemic, including the closure of gyms and indoor swimming pools, as well as a ban on hotel use, except for business travel.

    Some of the restrictions on shopping malls were lifted in the run-up to Christmas, but will be reintroduced shortly after the holidays.

    Since the beginning of the pandemic and until now, Poland has offerd companies aids worth 150 billion zlotys, of which almost 61 billion zlotys in the form of direct liquidity injections.

  • Business bankruptcies in Greece decreased in 2019

    Business bankruptcies in Greece decreased in 2019

    The total number of business bankruptcies in Greece, in 2019, recorded a decrease of 23.2% in comparison with 2018 (63 bankruptcies in 2019, 82 in 2018).

    As a result, the average annual change for the period 2010-2019 decreased by 18.1%.

    For the period 2010 – 2019, a decrease is observed with average annual change for the sole proprietorships 20.0%, for the companies with individual ownership 15.4% and for the business partnerships 17.7%.

    Most of the companies declared bankrupt, representing 38.1%, belong to section ”wholesale and retail trade, repair of motor vehicles and motorcycles”.

    Other 23.8% belong to section ”manufacturing”, 15.9% to ”accommodation and food service activities” section and 6.3% to ”construction” section.

  • 11.900 foreign controlled enterprises operated in Austria in 2018

    11.900 foreign controlled enterprises operated in Austria in 2018

    In 2018, 11.900 enterprises in Austria operated under foreign control, according to Statistics Austria. This is 3.8% more than in the year before.

    At the same time, Austrian enterprises had control over 6.000 enterprises abroad, a rise of 0.1% in numbers. Besides Germany, main target for Austrian investments abroad still was the central, eastern and south-eastern region of Europe.

    Although they accounted only for 3.4% of all domestic market enterprises (not including sectors like agriculture, forestry and fishing, education, health, cultural, public and non-profit sector), foreign controlled enterprises in 2018 employed one in five persons employed (21%) and accounted for more than one third (34.5%) of the total turnover in the Austrian market economy.

    74.4% of foreign controlled enterprises in Austria had their corporate headquarters within the European Union.

    By far the most important partner country was Germany, accounting for 39.2% of all cases, followed by Switzerland (11.2%), Italy (5.8%), the UK (4.6%) and the Netherlands as well as the United States (4.5% each).

    Though the number of Austrian affiliates abroad was more or less the same as the year before, their employment rose by 5.5% in 2018.

    Turnover went up by 12.8%, mainly due to the results of multinationals’ oil and raw materials trading entities reported by their Austrian controlling units. 

    But also other activities in the petro-chemical cluster, like manufacture of refined petroleum products, manufacture of chemicals and chemical products, performed very well in 2018.

    Foreign affiliates could mainly be found in Germany (14% of all units or 13% of foreign employment). Ranked by employment shares, Germany was followed by the Czech Republic (9.0%), Hungary (6.9%), Romania (6.5%), the United States (5.2%) and Poland (4.6%).

    65.6% of all foreign affiliates were located in EU countries, reaching a share in foreign employment of 63.8%.

  • European businesses are preparing for a historic recession

    European businesses are preparing for a historic recession

    Almost six in ten respondents at an Intrum survey say a Pan-European recession is a top three challenge when it comes to consumers paying on time over the next twelve months.

    In the survey, two measures among European companies clearly stand out. In order to protect their business in preparation for a recession and an economic upheaval, 38 per cent of respondents plan to cut costs, while 35 per cent will be more cautious about debt.

    29 per cent say they are looking to cut down on recruitment to prepare for a recession, compared to 18 per cent in 2019.

    ”Businesses are now taking necessary steps to prepare for a recession caused by the pandemic. Decreased revenues have reduced businesses’ cash flow and increased pressure on their outgoing payments”, says Mikael Ericson, President and CEO of Intrum.

    The payment gap is widening

    The estimated time between the agreed payment term and the actual duration of pay is now 14 days compared to 6 days in 2019 in B2B corporate payments.

    More than four in ten respondents (43 per cent) see risk from debtors increasing over the next twelve months and 19 per cent say it will increase significantly. Businesses are under increasing pressure by reduced liquidity, leaving many of them to search for alternative ways to free up cash.

    Nearly half (46 per cent) say the widening gap is a real risk to the sustainable growth of their business. During the crisis, more than half (51 percent) said that late payments threatened a liquidity squeeze for their business, compared to 35 percent of those surveyed before the crisis

    Real estate and construction hit hardest by late payments

    Intrum report highlights that businesses in the real estate and construction sector have been hit hardest by late payments. 41 per cent of these businesses say they now have accepted longer payments to avoid bankruptcy, whereas the European average is 35 per cent.

    At the same time, as previously reported, companies within hospitality and leisure still struggle with different government restrictions across Europe.

    Within this sector, four in 10 respondents (42 per cent) say that a recession will have a severe impact on their businesses – the highest figure of the 11 industries Intrum surveyed.

    Intrum has gathered data from 9.980 companies across 29 European countries covering 11 industry sectors. The survey was conducted during February to May 2020 (pre and during Covid-19).

  • Business demography in Bulgaria in 2018

    Business demography in Bulgaria in 2018

    The active enterprises with zero employees in Bulgaria represent the largest proportion of all active enterprises during the whole (2014 – 2018) period.

    In 2018 their number is 168.848 which are 47.1% of all active enterprises. There are 131.816 enterprises in the next ”1 – 4 employees” group which is 37.4% of the total number of active enterprises for 2018.

    The enterprises in the ”5 – 9 employees” group represent the smallest proportion of all – 7.2%.

    The number of persons employed in ”10 or more employees” group represents 69.4% of all employees for the 2014 – 2018 period while the proportion of the enterprises in this group is 7.8% of all active enterprises.

    Almost 11.4% of the total numbers of enterprises in the selected economic sectors are newborn in 2018.

    For the last five years the annual average percent for newborn enterprises was 11.9% of the number of active enterprises during this period.

    For the 2014 – 2018 period the highest share of newborn enterprises is in sector G – ”Wholesale and retail trade; repair of motor vehicles and motorcycles” – 41.1%. At the same time the smallest share of newborn enterprises is in sector B – ”Mining and quarrying” with less than 0.1% on average for the whole period.

    Almost 80.6% of the enterprises born in 2017 survive one year later, as in the group of ”5 – 9 employees” this share is 88.4%.

  • 5.5 million euros for employment and micro-enterprises in Milan

    5.5 million euros for employment and micro-enterprises in Milan

    The guidelines for the allocation of grants for the creation and stabilization of jobs for neighborhood and neighborhood micro enterprises belonging to the economic sectors most affected by the pandemic have been approved by the The Municipality of Milan Board.

    The contributions amount to € 5.5 million and come from the Mutual Aid Fund.

    Contributions will be granted to micro-enterprises of the economic sectors most affected during the lockdown:

    • retail business activities (excluding food and basic necessities),
    • personal services (hairdressers, barbers, beauty centers etc.),
    • catering businesses,
    • accommodations and travel agencies.

    This enterprises must have up to 5 employees hired with full time employment contracts and who have undergone at least 56 days of mandatory closure.

    Specifically, the funds will cover the costs for new staff hires with permanent or fixed-term employment contracts lasting at least 12 months or with apprenticeship contracts, or the stabilization of staff already hired with contracts.

    Two aid formulas

    The first, a contribution of up to a maximum of 20.000 euros to cover the costs for the creation of permanent employment relationships. 

    The second, economic coverage for fixed-term contracts, lasting at least 12 months, or apprenticeships up to a maximum of 15.000 euros.

    In both cases, the funds will be allocated in the amount of 80% of the expected expenditure and will be disbursed in the amount of 80% of the expenditure actually incurred and reported. 

    Contracts stipulated after June 1, 2020 are considered admissible.

    All information and documentation necessary for submitting the application will be available in September on the portal of the Municipality of Milan.

  • Business leaders are optimistic about recovery in Europe

    Business leaders are optimistic about recovery in Europe

    Two-thirds (66%) of business leaders globally are optimistic that the European market will make a relatively fast recovery from the economic downturn caused by the COVID-19 pandemic, according to a new report from Accenture.

    The report, entitled “Bold Moves in Tough Times” and based on a survey of nearly 500 C-level executives in Europe, North America and Asia-Pacific across 15 industries, found that approximately three in 10 respondents (29%) expect the recovery in Europe to be fairly rapid (“V-shaped”), while 37% anticipate a slower, but steady, “U-shaped” recovery in the next 12 months.

    The most optimistic sector is pharmaceuticals/biotech/life sciences, with 34% of business leaders in that sector expecting an increased demand in Europe as a result of the pandemic. The second-most-optimistic sector is communications, media & entertainment, with 52% of those respondents expecting a V-shaped recovery in their European markets, followed by insurance, at 47%.

    At the other end of the spectrum are the automotive and airlines/travel/transportation sectors, with only 7% and 12% of respondents, respectively, expecting a rapid recovery.

    The report also reveals that executives expect the German, Nordic and U.K. economies to rebound the fastest from the downturn, followed by France, Spain and Italy.

    In addition, European business leaders are optimistic regarding Europe’s competitiveness, as four in 10 respondents (39%) believe that European companies will be more competitive vis-a-vis their U.S. peers than they were before the crisis, and even more (43%) believe that European companies will be more competitive compared with Chinese businesses.

    Accenture’s research indicates that there is a risk that executives in Europe are overly cautious regarding how they prepare for the rebound, compared with those in North America and Asia-Pacific.

    Specifically, European executives appear to be:

    • Focusing on incremental rather than game-changing innovation: More than half (53%) of European respondents said they are slowing investments in innovation and won’t relaunch any initiatives in the next six months, compared with 33% of respondents in North America and 49% in Asia Pacific.
    • Underinvesting in the future of business: In Europe, only about one in seven companies (16%) is already investing in initiatives to prepare for the rebound, compared with one in four (25%) in Asia Pacific and one in three (34%) in North America.
    • Less likely to collaborate to rebound: Business leaders in Europe are slightly less likely than those in North America and Asia-Pacific to collaborate with other companies to mitigate the impact of the crisis and rebound faster (48% of those in Europe, compared with 53% in North America and 55% in Asia-Pacific).
  • 41.087 new enterprises were created in Austria in 2018

    41.087 new enterprises were created in Austria in 2018

    In 2018, 41.087 new enterprises were created in Austria, according to the latest available data by Statistics Austria.

    Referring to the total number of active enterprises on the market, this corresponds to an enterprise creation rate of 7.4%.

    Compared to 2017 (7.6%), the intensity of enterprise creation slightly decreased.

    1.5 jobs were created on average per newly founded enterprise.

    At the same time, 32.006 enterprises closed, resulting in an enterprise closing rate of 5.8%.

    Per enterprise closed down, 1.6 jobs were lost on average.

  • CFOs in Romania expect massive drop in business

    CFOs in Romania expect massive drop in business

    The perception of the CFOs in Romania regarding the evolution of the main financial indicators of their companies has changed dramatically in only several months as a result of the COVID-19 pandemic, according to CFO Survey Romania, conducted by Deloitte in April-May 2020 based on opinions expressed by CFOs in Romania.

    Their main concern for this year is the drop in demand, as 73% of the survey participants estimate a decrease of the internal demand, and 45% of them, of the external demand.

    The share of those who expect revenues reduction is 67%, while at the end of 2019, 78% of them estimated increases in revenues, according to the survey.

    In this context, the CFOs’ main strategy for the next 12 months is cost reduction (58%), distantly followed by ensuring cash flow (16%) and organic growth (13%).

    Only 9% of respondents estimate increase in investment over the following 12 months, compared to 39%, at the end of 2019. The share of those who anticipate a reduction of the number of employees is 44%.

    Three quarters of the survey participants (75%) are pessimistic regarding the near future, as many of them expect their company’s financial prospects to be strongly affected by the economic crisis generated by the pandemic.

    As for the measures announced by Romania to support the local economy in the fight against the COVID-19 pandemic, 58% of the CFOs consider they are less effective than the ones announced by other European states.

    The main measures implemented by companies in the context of the COVID-19 outbreak were work from home (87%) and renegotiation of ongoing contracts (73%).

    As a result, companies in Romania saw as a priority the improvement of their IT systems to allow work from home (over 35%). Also, 28% of the respondents say they focused on the digital transformation in sales, customer care and supply chain.

  • 50% of German companies expect major revenue drop in 2020

    50% of German companies expect major revenue drop in 2020

    According to data gathered by AksjeBloggen, nearly half of the German companies expect major revenue drop in 2020 due to coronavirus pandemic.

    More than 25% of them expect revenue declined by more than 50%.

    Coronavirus outbreak affected 92% of the German economy

    The DIHK survey conducted in March 2020 among 15,000 German companies showed that 23% of respondents expect profits drop between 10% and 25% due to coronavirus outbreak.

    Another 26% of businesses stated they would probably experience a revenue decrease between 25% and 50%. Only 3% of respondents believed the coronavirus is not going to affect their revenue at all. Statistics showed 2% of German companies expected their income to increase in 2020.

    The survey also revealed the coronavirus outbreak affected almost 100% of German businesses in the hospitality and travel industry. More than 90% of companies in the wholesale, transport and storage, retail and business-related services also significantly noticed the impact of the pandemic.

    Manufacturing, health management, and construction industry follow with 88% and 86% of troubled companies, respectively. Statistics show that 92.4% of the entire German economy is affected by the coronavirus outbreak.

    Two-thirds of German companies require emergency Government grants

    The coronavirus also influenced how German companies evaluate their future. According to the DIHK survey, 63% of them expected less demand for their products and services in the following weeks.

    Cancellation of orders ranked as the second-leading problem with a 48% share among respondents. The standstill of business activity, liquidity shortfalls, and reduced investments followed with 43%, 41%, and 38% share.

    The survey also revealed almost 70% of German firms found emergency government grants and reduced hours compensation as the most relevant support measures during the coronavirus outbreak. Another 60% of them require a cut of advance payments.

    Government and bank loans follow with 31% and 16% share of companies who preferer this type of support measures.

  • Fixed cost subsidies will be available this year for Austrian businesses

    Fixed cost subsidies will be available this year for Austrian businesses

    Austrian Finance Minister Gernot Blümel said in a press conference that ”Fixed cost subsidies will be available this year. Applications possible from 20th May”.

    “We have already achieved a great deal with the €38 bn protective package we have extended over the Austrian economy. Much remains to be done, but a total of around €19 bn in funding has been committed so far. There is a €15 bn corona relief fund, which is processed via COFAG and includes two relief mechanisms. On the one hand, there are loans, which are guaranteed by the state and granted through the banks”, said Finance Minister Gernot Blümel.

    COFAG has provided around €1 bn in guarantees by now and Austria is one of only four EU countries to offer 100% guarantees.

    Advance payment of the fixed cost subsidy

    Additionally to the state guarantees, the fund provides a second relief mechanism in the form of grants to particularly hard-hit companies. These grants cover fixed costs and perishable goods.

    The subsidy is staggered and, depending on the extent of the loss, up to 75 % of fixed costs and perishable goods can be reimbursed. It is now also possible to pay this subsidy in advance.

    Applications can be submitted on FinanzOnline from 20th May. The finance office checks plausibility in an automated process before COFAG conducts the final checks and approves the payment.