IS PUBLIC INTERVENTION IN THE COVID-19 CRISIS EFFECTIVE?

Governments have responded quickly and appropriately to the economic and financial crisis caused by the coronavirus epidemic. Nevertheless, in many countries, companies will face significant solvency problems. To help these companies, managers will need to rethink their strategy and shift from a generalised cash injection to more targeted support to ensure the solvency of companies with weak balance sheets but a strong business model. This article describes a number of policy instruments and proposes a set of principles on how best to use these instruments to support the business sector without losing sight of some key societal objectives.