CEO Update: Ibec solutions to liquidity crisis

Friday 03 April 2020

Following our engagement with Professor Philip Lane, Board member and Chief Economist of the European Central Bank, our resolve is stronger than ever to ensure that the scars of this crisis do not deepen and that our Government introduces substantial liquidity measures commensurate with other countries.

Our focus this week is on influencing Government to proactively step up in this area having taken action on the other dimensions of the dual crisis. This liquidity focus is to preserve vulnerable business, avoid liquidations and lay the foundations for a speedy return to recovery for our society and economy. 

The Ibec team has developed a suite of proposals outlining measures for business liquidity and credit in the economic crisis which, if fully implemented, would increase the total Government support package to 10% of GDP, circa €35 billion, and bring us more in line with other EU countries. The proposals focus on priorities and costing of four key areas:

• Tax forbearance and rebates.
• Liquidity support.
• Direct cash supports for small firms.
• State backed guarantees

I attach below a deck with a detailed outline of proposals and a link to the latest episode of the Ibec podcast on the issue of business liquidity.

Thank you for your support and engagement in recent weeks, it has been very encouraging and provides us with the insight we need to continue to support you and serve your interests to policy makers and key stakeholders. In that regard, Professor Lane has offered to facilitate input from Ibec members to the ECB which I will collate in the coming days and would be grateful for any feedback on priorities for inclusion.