One of the German observers drew attention to Putin’s disengagement from the management of the country is in crisis, someone-in a wave of bankruptcies and rising unemployment without state aid. DW collected the opinions.
After the mode of working days in Russia will end, to begin again the work will not all
Second time in a week, Vladimir Putin appealed to the citizens of the country. On 2 April the President of Russia announced the extension, as he put it, the “mode-working days” until April 30 inclusive. The reason for the introduction of new measures, the number of cases COVID-19 in Russia continues to grow rapidly, although still relatively small, more than 4 thousand confirmed cases. The President also demanded to retain the workers their wages. At whose expense it can be done, because many businesses will grind to a halt, the Russian President said.
In most countries affected by the epidemic of the coronavirus SARS-CoV-2, quarantine measures are accompanied by large-scale government aid programs to affected businesses and individuals. The lack of clarity about whether there will be state aid package to Russia to compensate for losses due to combat coronavirus that causes observers in Germany about the fate of Russian small and medium businesses. “It will hurt business. Income and the costs will remain,” says Janis Kluge (Kluge Janis), expert of the Berlin Foundation “Science and politics” (SWP).
In Russia the wave of bankruptcies and rising unemployment
Russia has low external debt and has financial reserves. However, a large capacity of the Russian state to collect a large anti-crisis package to help the business Janis Kluge sees: “the national wealth Fund for the current crisis is too small, it can be used only partially. Besides, in Russia there is no functioning mechanism of distribution of state aid.”
Latest Putin’s speech indicates that the President actually shifted to the business a huge load, I noticed in conversation with DW, the Executive Director of the Eastern Committee of German economy Michael harms (Michael Harms).
The Kremlin, according to him, ordered the business, “on the one hand, to go on vacation for a month, even six months, given the may holidays, and have not created any alternative, and any support that would be focused on the German model of reduced working time or have provided other state grants”, and on the other: “if you oblige companies to not work, the state must, to some extent, all of these costs to compensate. It is, from my point of view, the main problem”.
According to Kluge, a wave of bankruptcies and rising unemployment in these circumstances is inevitable. This can be facilitated by the fact that the restrictions may last longer than the period mentioned. “April 30 is an artificially assigned date. Because then the Russian companies will not be able to work as usual”, – the expert added SWP. It is not in the may holidays, and in the risk of new outbreaks of infection, vaccine which not and in the coming months does not appear, Kluge recalled: “Business will probably be able to return to normal mode until the end of the year.”
Putin’s Plan? Think about him in Germany
German commentators draw attention to the fact that at the moment of crisis the Russian leader, in their opinion, more dismissive of his crisis management, providing others do it. “Worldwide it’s time for a strong Executive power, which limits the freedom to oppose the spread of the virus, but Putin is like anything to do with it. If the crisis is played out in the world, which his world has nothing to do,” wrote a journalist of the newspaper Die Zeit Alice Bot (Alice Bota) in the article, entitled “Putin without a plan”.
In this regard, the German observers drew attention to the fact that a large share of responsibility in the fight against the pandemic coronavirus, the Russian President gave the heads of regions. “I think it is not fully thought-out decision, because it declared the President, but ultimately at the mercy of the governors, as I understand it, – said Michael harms. – Suppose, say, everyone decides that their region is necessary.” In the current situation just would have to accept common rules, says harms, which could be adapted to regions, “But no clear reference point”.
German businesses adapt to new Russian realities
Michael harms also expressed concern that in the current situation, running business in Russia, including German companies, will be outside a clear legal framework. He called the mode of working days the “gray legal area”. “After all, this concept of “after hours” neither in the Labour code of the Russian Federation or in the Russian legislation”, – said the Executive Director of the Eastern Committee of German economy.
Most of the 900 German companies operating in Russia continue its work despite the epidemic responded to the request of DW in German-Russian chamber of Commerce (ANC). Many employees transferred to work from home, added there. Many companies in Germany transferred its employees to part-time (Kurzarbeit), requesting public assistance. Whether German firms to similar assistance in Russia, how are they going to pay wages to employees who cannot work from home, – on these questions in AHK is not answered.
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