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12.03.2020 9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS CONTRIBUTING JOURNALIST: MASSIMO COSTA BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 T he government has done well to take drastic action to curb flights from five European countries and introduce mandatory quarantine in its efforts to combat the coronavirus. Malta has so far registered six cases and all have been imported. Vigilance and prompt action to keep the virus at bay and isolate the individual cases is important. e country must do all it can to limit the spread of Covid-19 and more drastic meas- ures may be needed to ensure the country delays, and hopefully avoids, the onset of a vicious outbreak as has been the case in It- aly. Restrictions on mass events, travel bans and mandatory quarantine will obviously have an impact on the economy and busi- ness. is impact is unlikely to be short-lived, given the global picture that sees various countries adopting drastic measures to con- tain and combat Covid-19. Within this context, we expect the govern- ment to take a pro-active stance and bring together the various social partners to dis- cuss a way forward for the next six months and beyond. At the very basic level there is the issue of quarantine leave and who should suffer the cost of this in cases where the quarantine is of a precautionary nature. e Malta Employers Association has given direction to its members to deduct quarantine from the employee's leave unless the person has developed symptoms, which would qualify the absent period as sick leave. However, the widespread cost of this, in- cluding the social and economic disruption it can cause, could be heftier than expected. is is why an agreed strategy forward is de- sirable. So far, the government has not addressed this and it remains unclear what direction the Malta Council for Economic and Social Development is taking. But at a much wider level, the coronavirus outbreak has already started hitting the bot- tom line of businesses. Disruptions in world travel can be felt in the tourism industry and ancillary services. Restrictions on circulation and closure of shop floors in different countries have also impacted supply chains and trade. is will undoubtedly affect the global economy and Malta is not immune. e government must appoint an emer- gency committee, roping in all key players, including employer organisations, unions and the Opposition, to draw up an action plan with concrete aid measures. It is positive to note what Finance Minis- ter Edward Scicluna has told this newspaper that his ministry is evaluating the likely eco- nomic impacts of the virus on each sector of Malta's economy. He also said discussions were underway with Malta Enterprise, oth- er business representatives and the banks to learn of the particular needs of industry in the current difficult situation. However, we advocate for a more inclusive approach. In these circumstances, there is no room for grandstanding. is is a na- tional emergency that requires a national response. Indeed it requires a Europe-wide effort to soften the inevitable blow on EU member states. Mitigation measures to help businesses survive this period must be drastic as those being used to combat the diseases. Businesses need concrete arrangements with banks and utility companies to have loan and bill payments deferred without penalty. Government must also step in to sustain wages in those sectors where layoffs are a stark possibility. Some companies may agree on a reduced work week of four days with the fifth day be- ing financed by a specific government train- ing fund, similar to what happened during the 2008 financial crisis. Additionally, the government may also step in to pay the National Insurance con- tributions of employees for a set period of months in sectors feeling the strain and thus alleviating the burden from employers. e advantage over 2008 is that Malta's economy and public finances are in much better shape, giving the government more than adequate leeway to act decisively and meaningfully. Solutions can be found if everybody works together. Mitigation measures needed to soften coronavirus blow

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