55% of Small and Medium Firms in Europe Expect to Shut Down by September Next Year if Things Stay as They Are

Together they employ two-thirds of European workers

Over half the small and medium-sized companies which together provide jobs for two-thirds of European workers fear for their survival in the coming 12 months, according to a survey released by management consultancy McKinsey on Thursday.

The survey was conducted in August, before the current acceleration in new coronavirus cases across Europe that is forcing governments to impose new restrictions on activity and prompting speculation of fresh national lockdowns.

The finding comes as warnings multiply of an impending wave of business insolvencies and as the International Monetary Fund and others urge the region’s governments to double down on state support to help companies weather the coronavirus pandemic.

The McKinsey survey of more than 2,200 companies in five countries – France, Germany, Italy, Spain and Britain – found that 55% expected to shut down by September next year if their revenues remained at current levels.

At the current trajectory, one in 10 small and medium-sized companies were expected to file bankruptcy within six months.

“This is a substantial burden on the financial sector,” report co-author Zdravko Mladenov said of just one of the knock-on impacts of such a development, which would also send jobless totals surging and stymie wider investment in the economy.

Economists polled by Reuters last month forecast that the euro area economy would grow by just 5.5% next year after a fall of around 8% this year but warned that even that patchy recovery was vulnerable to a further spread of the virus.

Small and medium-sized enterprises (SMEs) are defined as those with 250 or fewer employees.

In Europe, they employ over 90 million people but their small size makes them vulnerable to cash flow crises. In Spain, for example, 83% of the 85,000 businesses that have collapsed since February employ fewer than five workers.

State measures across the region ranging from moratoria on bankruptcies to loan repayment holidays have until now kept thousands of struggling businesses afloat. But as those measures are in some cases wound down, Germany’s Bundesbank and the Bank of England are among those warning of rising insolvencies.

“Policymakers need to do whatever it takes to contain the pandemic and its economic damage, and not withdraw support prematurely to avoid repeating the mistake of the global financial crisis,” the IMF said in its blog this week. (Blog: bit.ly/2Hp1sLS)

“For companies, policies now need to go beyond liquidity support and ensure that insolvent but viable firms can remain in business,” it added, citing measures to facilitate debt restructuring or make equity available to viable firms.

Source: Reuters



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Rowdy-Yates
Rowdy-Yates
30 days ago

I love that cartooncomment image

voza0db
30 days ago

DO NOT WAIT TILL NEXT YEAR SHUTDOWN NOW

STOP providing services to RICH assholes, once these fuckers start to feel the PAIN of lockdowns the jesters (aka politicians) will change course.

ke4ram
ke4ram
30 days ago

They could do what Nancy Reagan said to do with drugs.

Businesses and customers,,, Just say no!

Of course that would require backbone but that seems in short supply these days.

George Reynolds
George Reynolds
30 days ago

I don’t think the crypto-Marxist globalists that rule Western Europe care about this. In fact they think it’s a good thing.

Charles Homer
Charles Homer
30 days ago

Here is an article that looks at how Amazon has allowed price gouging on its platform during the pandemic:

https://viableopposition.blogspot.com/2020/10/amazon-and-price-gouging-during-covid.html

The best thing that consumers can do is to “humble” Amazon by doing their shopping at locally owned businesses wherever possible rather than further enriching America’s wealthiest oligarch.

NightriderXP1
NightriderXP1
30 days ago
Reply to  Charles Homer

It’s kind of hard “humbling” a $1T company whose owner has an estimated $232B in net worth. To make it easier for people to understand just how wealthy Jeff Bezos is, $232B is 232,000 Million dollars. Few Americans will ever achieve a $1M net worth…

The Wild & Windy Knight TNSHS
24 days ago
Reply to  NightriderXP1

It’s impossible for me to conceive of that much money.

Thought I’d give you an update:

I’m down to sciatica on the right side. It hurts but it’s bearable. I can pretty much walk normally, standing up and the first few steps being the only time someone might notice something is wrong. I finished the Medrol (methylprednisolone) pack but not sure if it did anything. I start physical therapy on Tuesday. The ortho center is also a pain center so I’m going to ask if they can give me something for the sciatica but I have a feeling how that’s going to go.

NightriderXP1
NightriderXP1
24 days ago

There comes a point when it makes no logical sense increasing and hoarding wealth. No one needs 1,000 million dollars except for bragging rights. People as wealthy as Jeff Bezos and the Walton family could easily afford to pay ALL of their employees a living wage and they would never notice a change in their quality of life. Why they continue accumulating more and more wealth even though they’ll never be able to spend all of what they already have in dozens of lifetimes is beyond my comprehension. Imagine how loved billionaires would be if they took good care of their employees. I suspect that being loved by their staff would offer a much greater high than increasing their wealth by another billion or more…

I’ve never taken Medrol but it sounds like it’s acts much like Prednisone. I wonder what the differences are? We each react differently to different medications, which is why some people suffer from some of the side effects and some don’t. Did you do a 5 or 10 day titration? I benefited from Prednisone almost immediately. It took a few times before I realized that my sneezing attacks stopped after taking prednisone. An Eye/Nose/Throat specialist told me that Prednisone couldn’t do what it did for me. But every time the sneezing started up again, I would ask for Prednisone and it would stop them in their tracks. Each time, the sneezing stayed away for a longer period. I haven’t had a sneezing attack in several years now. Before Prednisone, I had them every single day. My dog’s front paws were knuckling under but after taking Prednisone, that problem went away permanently. If the Prednisone didn’t work, we probably would have put him down. He was 7 yo at the time. He lived to be one month shy of his 16th birthday. Hopefully you’ll be noticing improvement now that you’re done with the Medrol pack…

My doctor actually considered prescribing the drug that makes you sick if you use an Opioid medicine to me. We both talked him out of it pretty quickly. He wanted to prescribe if for an off label use. But once you start taking it, doctors and pharmacists treat you like a drug addict because the drug is often given to drug addicts who can’t quit. And the drug is expensive. It’s not something that should be prescribed to everyone. Make sure you research everything they prescribe to you to make sure they don’t slip something like this in…

The Wild & Windy Knight TNSHS
24 days ago
Reply to  NightriderXP1

I think Medrol is just a brand name for methylprednisolone because it said “Medrol” prominently and then “methylprednisolone” in parentheses. Not sure if it helped because both the shoulder and the sciatica hurt a lot today. It was the 5 day version. Then again, maybe they’d be even worse had I not taken it. I guess there’s no way to know. Which is all rather depressing. Just have to deal with it, obviously.

Glad it worked for you and the furball.

Not in the mood to talk about kabillionaires but I agree with everything you said.

NightriderXP1
NightriderXP1
24 days ago

That’s a shame. It sounded like you were on the road to a full recovery yesterday. Hopefully you’ll benefit from therapy next Tuesday. Therapy can be hit or miss too so don’t set your expectations too high. I’m spending 3 hours per week with a therapist and I’m now questioning whether it’s worth it…

The Wild & Windy Knight TNSHS
24 days ago
Reply to  NightriderXP1

It’s not all that bad. I guess I expected every day to be better but that’s probably unrealistic. The shoulder is a long-term process and I assume I have weeks, if not months, to go.

The sciatica will just do whatever it wants. It concerns me that it switched sides which tells me either one disk has compromised nerve openings on both sides or more than one disk is damaged. If it persists I’ll have the MRI. Not much they can do for it in any case, though.

Just wish I could get some pain relievers that work for when everything gangs up on me at night.

One thing really concerns me, though: The “hips in a vice” thingy. I have never felt pain even approaching that. If it was the sciatica I assume that means it could return at any time. If it wasn’t, WTF was it? I should have asked the orthopedist more about that but so much was going on there was a lot to cover.

Oh, well. No sense worrying about what might or might not happen. Best to concentrate on what I can to alleviate what’s happening now.

Thanks again for your concern, support, and advice.

CB
CB
24 days ago

It’s normal for the sciatica to shift around if your disk is distended. Without the MRI it’s hard to say that’s definitely the cause, but it is common.

The trick is to baby it, get lots of rest and gentle stretching and don’t lift anything heavy!

Low-impact exercise like swimming can really help (If you can find a pool that’s open… :/)

It also helps to lose a few lbs, if that’s an issue. I know it is for me.

Eventually, the disk will recover, but it can take a really long time. I hope you feel better soon.

The Wild & Windy Knight TNSHS
24 days ago
Reply to  CB

Thanks! I appreciate the info. I’m thinking I will be having an MRI at some point. The orthopedist said he’d schedule one if I wanted but didn’t think it was needed at that point. Then again, the sciatica wasn’t as much of an issue when we discussed having one.

Not lifting anything heavy and, from what people are saying, I seem to be losing weight. I was never anything approaching Trumpian proportions but I can certainly stand to lose a few pounds. Getting a decent amount of rest which is unusual for me.

Things seem to be generally getting better each day but, of course, it’s a slow process.

Thanks for the info, concern, and advice, all of which is very much appreciated.

CB
CB
2 months ago

It takes months and months. I’ve been through it before. I actually had to have surgery because I started to lose muscle. If it becomes that extreme, I highly recommend the keyhole procedure.

If you don’t have foot drop, I would advise against surgery.

MRIs are expensive. Without them, the doctor is sort of flying blind, though. In my case, the MRI made it very clear what the problem was.

The Wild & Windy Knight TNSHS
2 months ago
Reply to  CB

Someone mentioned that it’s best to check with Medicare to be sure they’ll cover it. The orthopedist said he thought they would. Best to make sure if I decide to have one.

I managed to fall asleep in an MRI machine during the procedure. The operator was none-too-happy about that.

Every now and then I do a Google search to try to find out why the machines make such a loud banging noise.

I’m thinking you might know, being a supergenius and all.

Each day I seem to be doing a little better. As that continues I become more optimistic that the worst is behind me.

Barbara Kuposky
Barbara Kuposky
24 days ago

If the pain in your hips is that severe, why are you holding off on getting an MRI? OK. None of my business, but you always sound so sensible and centered. This hesitancy just doesn’t compute.

The Wild & Windy Knight TNSHS
24 days ago

The pain in the hips subsided days ago. Before I went to see the orthopedist. It was severe but short-lived, about 2 days. Now it’s just the shoulder and what everyone presumes to be sciatica on the right side. Both are bearable.

I brought it up because I was wondering what could have caused it and if it’s something that might happen again.

Questions for the PT on Tuesday.

I’m out for the night, off to read a book I suspect, but aren’t certain, that I read before.

Barbara Kuposky
Barbara Kuposky
24 days ago

Sorry that I was so intrusive.

The Wild & Windy Knight TNSHS
24 days ago

I didn’t think you were. I hope I didn’t make it seem that way. I appreciate your input and please feel free to ask me anything.

NightriderXP1
NightriderXP1
24 days ago

I talked to my therapist about if they know anything about sciatica today and if I might have it too. She said that there’s a good chance I do have what you have. I’ve been having pain in my hips but nothing looks abnormal in my MRIs and CT scans. I’ve lost a lot of mobility this past year so I’m not a happy camper. The therapist said that they could take care of sciatica after we finish dealing with lymphedema in both legs and feet. And I have back pain and am having trouble with my bowels, which I thought might have been an impacted colon. When the surgeon told me that I could walk as far as I could tolerate, it took a lot to get up to 3 full laps at the beach but with the new hip and leg pain, I’m struggling to do half of the walk. The construction site has removed a lot of the things I used to take breaks on. If they remove the stuff at the turnaround spot, I may not be able to do the walk anymore. I could follow the dogs in my car so that they can get exercise but then I’m screwed. I need the exercise too…

Because of the leg and hip pain, it took over 6 hours to mow my backyard last week. I used to be able to mow both the front and back and trim everything in 2 hours. I’ll be bummed if I don’t get to go back to that . I shouldn’t take 6 hours to ever mow my back yard…

The Wild & Windy Knight TNSHS
24 days ago
Reply to  NightriderXP1

Here’s to hoping both us can return to some normalcy. You seem to be going through far more than me and for a lot longer.

I despised mowing the lawn. I despised the lawn. I despised that the grass would grow. I despised that the bunnies and such couldn’t eat enough of it to make mowing unnecessary. How I looked forward to it all turning brown in the fall and releasing me from its hellish grasp.

“BE GONE, YOU GREEN MONSTER WHO LOVES TO TORMENT ME!” 🥵

OK, I’m all better now.

NightriderXP1
NightriderXP1
2 months ago

My life was permanently altered for the worse 23 years ago. I’ve had plenty of time to get used to my new reality. I’m not losing sleep over it anymore. It is what it is. OTOH, this is all new to you so you have every right to be upset about it. There’s a very good chance that you’ll get back to normal again so you have a lot to be hopeful for…

My lawn has become a monster for me too, but as long as I can mow it myself, I’m ok with it. It takes a lot longer to mow it now, but the good thing is that I can still do it. I don’t look forward to the day when I can’t anymore…

Barbara Kuposky
Barbara Kuposky
2 months ago
Reply to  NightriderXP1

I’m sorry. Lymphedema really sucks. Can you use a 4-wheeled walker with a seat for when you tire?

How is Baby Girl doing on her new medication?

Barbara Kuposky
Barbara Kuposky
24 days ago

How did your Physical Therapy appointment go? I’m assuming that they also gave you exercises to do at home. I had a hard time with that, but suspect I’m far less disciplined than you are.

The Wild & Windy Knight TNSHS
24 days ago

The first one is next Tuesday. The orthopedist was pleased at how the healing is progressing, though. My range of motion is better but has some improving to do.

NightriderXP1
NightriderXP1
24 days ago

That’s awesome news! I hope your progress continues…

Meepestos
Meepestos
24 days ago
Reply to  NightriderXP1

Check this out. I’m wondering where one could find out what it is in the US.

Number of Wealthy Canadians by Each Wealth Category (UHNW, VHNW) in 2020:

Wealthy = 764,033 individuals in Canada have between $1 million and $5 million USD

VHNW = 91,823 individuals in Canada have between $5 million and $30 million USD

UHNW = 10,395 individuals in Canada have greater than $30 million USD

One out of 42 Canadians has over 1 million.

I suspect a good portion of those with 1 to 5 million are what we call house-rich folk that cashed in, in places like the lower mainland of BC and greater Toronto where where profits for homeowners for the last two decades are more like lottery winnings than from hard work or a good paying job.

I know many that were blue collar workers that became millionaires by simply sitting on a mediocre lot/house they purchased ten years ago that some Asian speculative investor wanted. I know no lack of folk like these that got 4 times as much as they paid for the property. Folk that has farmland near or in suburbs made even more. We knew of a land rich/cash poor guy that used to cycle into town from the derelict farm his parents left him in the boonies. He got 15 million for it 4 years ago. A steal or the developer that will build hundreds of houses on it that all will sell for well over 1.5 million each.

disqus_3BrONUAJno
disqus_3BrONUAJno
30 days ago
Reply to  Charles Homer

Amazon has always allowed price gouging on its platform.

Saint Jimmy (Russian American)
Saint Jimmy (Russian American)
30 days ago
Reply to  Charles Homer

The “lockdowns” have allowed oligarchs to consolidate control over entire economic sectors in the US, Europe, and Asia. They have eliminated a good deal, if not most, of the competition and potential competition in many industries.

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