The government today introduced a series of emergency measures to help when the corona virus makes our ordinary life and way of life more difficult. The question is whether this is enough.

Abandoned waiting days for workers hit two flies in one fell swoop. While it can prevent the spread of infection in workplaces, it gives people a little more security if they need to be home. The same applies to the proposal for deferred tax payments. Companies get direct cash at the cashier in a very strained situation. Historically, a pandemic lasts a few months. It is not possible to say with certainty how long this corona crisis will last, but it is clear that it will have an effect on Sweden's economy and Swedish companies.

The Riksbank ready

The benefit of a job tax deduction, which the Moderates suggest, seems far-fetched. More money in the wallet does not prevent people from isolating themselves or being sick. In the same way as cheaper aviation fuel in the oil price race's tracks, air travel does not increase at present. The fact that the Riksbank would lower interest rates and provide cheaper loans to companies is also not a cure for empty theaters, hotels and football matches. On the other hand, the Riksbank stands ready to lubricate the banking system is welcome and hopefully calm down.

While broadband companies, video conferencing companies and online grocery stores are doing well in the era of self-isolation, the losers in the virus's economic footprint are all the more so. Now the government has to think about how they will further create an economic policy that manages the next quarter for restaurants, caterers, trade shows, football clubs and concert organizers who are now seeing their income rapidly.

While economic activity is slowing down society, direct support in the form of loans to companies large and small may be needed for them to manage over the next few months. Therefore, it is grateful that Almi has more opportunities to issue loans.

Bolund appeals to the banks

But Finance Minister Per Bolund has also appealed to the banks to continue to lend money to the companies. Given that banks 'profits on mortgage loans in particular over the past ten years, there should be plenty of margin in the banks' balance sheets to postpone loan payments and renew loans for crisis companies. In 2018 alone, the banks' profit on the mortgage was SEK 50 billion, according to the Villa owners. Bankruptcies always happen, but that banks in this situation would start to slow down on their loan issuing rate and viable companies go bankrupt make the financial consequences of a difficult social situation worse.

In such a situation, the banks would also be given extended opportunities to issue loans without requiring common collateral - but in that case the Swedish Financial Supervisory Authority must mandate. Or simply that the state goes in as guarantor, something that happened during the 70s.

The spread of the virus from China to the rest of the world means that more and more dramatic measures are expected to prevent the spread of infection in society. It will affect our economy and Europe's economy. This is no longer a crisis preparedness exercise. It is for real.