Thijssen: “The recovery can take much longer than everyone thinks” - EZPress® - Finance

Thijssen: “The recovery can take much longer than everyone thinks” – EZPress® – Finance

The Hague, April 01, 2021 / EZPress / – “We must take seriously the economic recovery from the Corona crisis will take much longer than everyone thinks now.” This is what VNO-NCW President Ingrid Thijsen said this morning in an extensive interview at BNR about the crisis and what is needed to recover from it.

Delay in economic recovery
“We have to realize that the economic crisis will not end when we are vaccinated and the food industry is allowed to open its doors again. We must seriously think that we will not return to pre-Corona levels until 2024. So, a very good recovery plan is needed for our economy, which It’s not just about extending emergency assistance for another half year, “says Thijsen. In her view, there are two problems that could slow the economic recovery. The very ambiguous situation in the global economy and the “hidden” financial problems in the business world.

An uncertain global economy
For example, more than 30% of our economy depends on international business and it is currently uncertain when Corona is “under the thumb” worldwide. When was the world’s population vaccinated? What mutations will come? Additionally, the question is how many countries are actually affected. It depends on whether and when the global economy, and with it ours, will recover. For example, in three of the most important trading partners of the Netherlands (the United Kingdom, Spain and Italy), the economic situation was completely poor. The outlook for France, Belgium and Germany is also uncertain. According to the head of VNO-NCW, in the past year we have seen that we are repeatedly falling behind with Corona.

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“Everything is taking longer than expected. Every time new bears appear on the road. From a lack of vaccines to new Corona variants and possibly resistance. Hence, the global economic situation, and thus the situation in the Netherlands, is more ambiguous than we often think

Hidden problems at work
When it comes to economic recovery, putting companies in closed sectors back into place is very important. But there are several companies that have left a very dangerous financial feather according to Thijssen. They did not apply for emergency support, but did suffer significant sales losses. Or still expect it. Or they have suppliers who have struggled to support them, for example, by granting deferment payments, as there is a risk of a domino effect if that resource fails. In one of the pillars of our economy, the manufacturing industry, for example, 40 percent of companies expect to do so again in a lesser way this year than they were before Corona. “The expectation now is that in 2021 we will see an increase in bankruptcies of 44 per cent in the Netherlands,” said Thijsen, who pointed out in the interview several other problems under the cover of the economy, such as a mountain of debt of tens of billions. Depleted assets and delinquent investments.

Make a recovery plan a top priority
Theissen is advocating a major recovery plan for the coming years, including helping entrepreneurs reduce debt and build equity capital, boost new investment, and suspend tax increases from electoral programs and support packages until the end of this year. “ In the new entrepreneur agenda for VNO-NCW and MKB-Nederland, we have extensively detailed what this recovery plan could look like and we will get the Netherlands back on a structurally higher growth path. I think it is possible, but this requires decisive measures from the old and the new cabinet. ”

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