Much has been said about the health vs economy debate in the wake of the Covid-19 pandemic. As countries slowly allow businesses and sectors to reopen, concern grows about the long-term economic effects of the virus.

While people’s health must always come first, governments must have a long-term plan to support businesses during this period, but at the same time the support offered must be adequate to save jobs.

The Chamber of SMEs said that weeks into the relaxation of measures, SMEs told them that they are in a worse situation than they were before because business is either slow or non-existent while costs have continued to increase, threatening their existence.

The government has already provided aid for SMEs and businesses in general worst affected by the virus, such as the €800 wage subsidy. While this helps, one does question whether it is enough for small companies, who must pay rent for their offices, for their shops with little to no income in return.

While many think that, because businesses are reopening, we are out of the woods so to speak, it is not the case. At the same time, the restrictions imposed on businesses, such as clothes stores not being able to allow customers to try on clothes inside stores, is beneficial to not allowing the virus to spread. As such, the government must continue to support businesses that are struggling, despite being allowed to open, and not consider compromising health by relaxing certain measures that could cause harm.

The Malta Chamber of SMEs said it has been waiting for weeks for a scheme that will address the burden of commercial rental payments. “Other EU countries have recognised the importance of addressing the current problem with commercial rents.” Perhaps it is time for the government to consider such support if it will prevent any redundancies.

The European Union countries are going to be debating a proposed €750bn Covid-19 recovery package. Malta is expected to be offered close to €1bn in grants and loans. Finance Minister Edward Scicluna described the EU rescue package as "a fruit that can be a prickly pear." He warned that "one has to look into how the money will be given as aid for the post-pandemic. We need to analyse the money that will be given and what will be given in loans,” he said, stressing the need to see who will eventually pay for the debt “as we cannot be in a situation where we borrow more to pay off the loan."

The European Commission wants to introduce climate change taxes on airlines and ships, however this might negatively affect a country like Malta, Scicluna said. Therefore, "one should not simply look at the size of the funding package but what it truly consists of." Indeed, one would need to see what such a tax would entail, however the EU has long been pushing for greener transport. Indeed Malta for example has already declared its intention to move towards cleaner fuel vehicles for example, so moving towards green has been a European wide push. Climate Change is a threat after all. So Scicluna must negotiate if needed, but if such a move won’t hurt Malta much yet helps the environment greatly, then that must also be taken into consideration.

Scicluna also mentioned some issues regarding tax proposals tied in which could be harmful for the country. On tax matters, the government must negotiate and uphold Malta’s current tax regime which has benefitted the country for so long.

As for the possible package itself regarding loans and grants, if Malta is offered favourable loans, and is offered grants, then the government should seriously consider the offer, especially given that current support measures might not actually be enough. Yes, one must be prudent and see exactly what is offered and what kind of repayments would be needed, but don’t strike it off yet. The key will be trying to negotiate to have the issues that damage Malta minimised or removed, while also getting a package that will help further save businesses.

People fear the virus, even if the numbers are reducing locally, and as such businesses will continue to suffer until it is eradicated.