Recommendations The Financial and Social effects of the economic crisis: responses and counteracting measures Oriana Mazzali, Workshop Bratislava, 18 – 19 June 2009 With the support of

Recommendations Financial situation 1.SMEs are not informed or are inadequately informed of existing credit facilities/schemes targeting SMEs. Information about such schemes should be better circulated. Associations should be considered a prime channel of communication for all infos concerning companies 2.It has been confirmed both by multilateral financial institutions (indirectly) and commercial banks (directly) that there is a sectoral bias in granting loans to companies. Certain sectors are favoured because they are considered – sometimes based on questionable parameters – to be more high-growth than others. To counteract this bias there is a need for credit schemes that favour the neglected sectors (especially when the neglected sectors are labour-intensive and have a high prevalence of female employment).

Financial situation 3.Increased support to export insurance 4.Fiscal policy as a source of finance. Delayed taxes can provide a quick and easy source especially of short term finance for working capital needs.

Employment situation 1.Most companies prefer to retain competencies and skills so they prefer to retain employees. Companies should be supported in this with the introduction or extension of subsidized short-time working arrangements. This solution is far cheaper than un-employment benefits, avoids drastic solutions such as company or unit closures, retains skills and knowledges in the companies until better times. 2.Lower labour taxes 3.Funding of extensive training and re-training programmes of employees

General 1.Illegal imports continue to compound the problems facing companies in the current crisis. Better Customs regulations and increased controls are needed. 2.Also legal imports represent an additional problem for companies if imported goods are produced without complying with all the regulations required by a EU producer. There is a need to apply the same requirements for products produced in the EU and those imported in the EU. 3.Better rules and better enforcement of rules. The crisis was generated by lack of rules.

The role of Associations 1.Better governance at sector level. Associations put companies together and better serve their interests. 2.Associations can disseminate information to companies better than any other entity/institution.