Contractors outraged by Treasury decision not to recognize Corona as "force majeure" • Manufacturers have reached agreement in principle on actual payment of VAT • World governments offer massive scale programs to prevent economic collapse • US guaranteed volume of aid - 11% of total " C, and in Germany - 23%
Business closed in Beersheba // Photo: Dudu Greenshpan
Immediately after the presentation of the plan to deal with the Corona crisis by the prime minister and the finance minister, the self-employed and industrialist organizations reacted with dissatisfaction to hostility and demanded that business support be maintained in order to last after the crisis.
The Manufacturers Association retired from the corporate sector headquarters, which began on a uniform front. Yesterday, the industrialists demanded that the Treasury pay the VAT on a cash basis (according to actual payments, not according to invoices) - a conclusion that will probably be achieved. Histadrut chairman Arnon Bar David responded to the plan: "The government should have been more generous." A similar reaction was heard from all the independent organizations.
The contractors also reacted furiously to the Treasury’s determination. President of the Land Builders Association, Raul Sarogo, wrote to the treasurer-general "I read with astonishment and anger the letter of Gabi Shochat, senior deputy to the NIS, that the corona would not be recognized as a" superpower inhibitor "in the construction industry." In the situation of delay in delivery of apartments.
Governments in the world are putting their hand in their pockets
Attempts by the world's governments to stop the spread of the Corona virus are emerging as unseen expenditures since World War II: The disruption of operations, as of yesterday, has caused about $ 15 trillion worth of global financial assets to be erased, oil prices plunged by 60% and world governments exceeded An economic target that has set itself in a rush of more than $ 10 trillion so far to preserve the state of the economy as far as the crisis is possible.
Meanwhile, a new OECD report estimates the extent of the impact on GDP relative to each country and ranks Israel in a relatively good place. According to the report, the impact on Israeli GDP will be 21% compared to the original forecast - a figure that places Israel in the spot. - 10 from a list of 44 countries. Israel is ahead of the US, Canada, Australia, Japan, South Korea, New Zealand and most European countries. The country most likely to undergo the crisis is Ireland, which will lose about 15% of its planned GDP.
According to the OECD, the country that will be most affected is Greece, with a product loss of about 35%.
It is interesting to compare the Israeli program to similar programs in the world. It is worth noting that in many cases these are statements of assistance, not actual assistance.
World Economic Programs
U.S
Government Aid: $ 2.2 Trillion. Half a trillion of them are earmarked for extracting industry giants, and another $ 500 billion in direct aid to citizens and families in up to $ 3,000. GDP rate: 11%, most of them direct aid. Monetary aid: $ 4 trillion credit.
UK
Government Aid: Nearly £ 400 Billion. About 4 million lower-class people and small business owners will receive a state grant of about 80% of their three-year average over the past three months.
GDP rate: 17%, at least a quarter of them for direct aid.
Monetary aid: a 0.1% reduction in interest rates, the lowest in the history of the country. The central bank announced the acquisition of securities worth $ 200 billion.
Italy
Aid: A € 30 billion program, which includes direct aid and deferred payments and loans. Italians expect the EU to step up aid to Italy, which before the crisis owed more than € 2.3 trillion to the Union. The Italian prime minister warns that if the union does not help the Italians - Italian citizens may ask to leave the union, boosting "national instincts" among them.
GDP ratio: 1.3%.
Germany
Government Aid: 750 billion euros, of which 400 billion to stabilize the economy, provide bridging loans and rescue business.
Percentage of GDP: 23%, one-fifth of which is fiscal assistance and the rest a safety net, ie funds that should be returned to the state.
France
Government Aid: 345 billion euros, 300 of which are earmarked for bank loans on state guarantee.
Percentage of GDP: 13%, less than a fifth of them for direct assistance.
Canada
Government Aid: US $ 57 billion for direct aid and deferred tax payments.
Percentage of GDP: 6%, of which about 3% for direct aid.
Monetary Assistance: Reduction of interest rate of 0.75%, purchase of securities worth about $ 50 billion.
Japan
GOVERNMENT AID: The government is planning a comprehensive program of about half a trillion dollars to help citizens, businesses, purchase medical equipment, and improve medical infrastructure. Government party officials are also demanding to double the plan, to a trillion dollars.
GDP rate: 10%.
Monetary aid: Multiplying purchases to $ 112 billion. At present, no interest rate reduction is planned. The central bank will issue interest-free business loans in the coming year.
South Korea
Government Aid: $ 60 billion will be mostly spent on business bridging loans, with emphasis on airlines. Soon, the government will pay an average of $ 800 per household from the lower deciles.
Percentage of GDP: 3.5%.
Monetary Assistance: Reduction of 50 basis points to 0.75%.
Australia
Government Aid: US $ 224 billion, the vast majority from central government and a minority from local states. The administration will subsidize salaries to about 6 million citizens.
Percentage of GDP: 15%, the Australian government's debt will increase by one-third over the planned and will amount to about half a trillion dollars - which is about one-third of Australia's GDP in 2019.
Monetary aid: a reduction of the interest rate to 0.25%, aid to markets totaling $ 105 billion.
China
Government Aid: According to unofficial reports, the Chinese government will spend close to half a trillion dollars to restore the economy in the country of origin of the Corona. The country's deficit will rise to historic proportions.
Percentage of GDP: 3.5%.
Monetary aid: The Chinese central bank announced this week the sharpest cut in interest rates it has been raising on loans from commercial banks since 2015 - from 2.4% to 2.2%. This program is expected to help businesses take out $ 120 billion in loans. At the same time, the bank foreigners about $ 100 billion to markets.