Ministry health

Ministry: Further Closures of Covid Restrictions Will Cost Businesses Millions | News

A one-month period of restrictions could cost the restaurant industry as much as 100 million euros, according to a memorandum from the ministry.

A one-month shutdown could cost the gym industry around € 21.5 million, according to a ministry memorandum. Image: Kristiina Lehto / Yle

Tightening epidemic-related restrictions across Finland could cause public event organizers, gyms and restaurants to suffer losses of millions of euros, according to a memorandum from the Ministry of Social Affairs and Health on the so-called government plans.

On Wednesday, the government announced plans to curb or tighten restrictions on public events and activities across the country.

Many regions of Finland have already taken steps in this direction. For example, authorities in the southern Uusimaa region – home to Helsinki and often the largest number of new coronavirus cases in the country – have banned all indoor public events for three weeks.

According to the Ministry of Social Affairs and Health’s note on the matter, the restrictions are expected to protect the health of citizens, the country’s public health system and reduce the spread of the disease.

But from an economic point of view, the impact of the restrictions will be negative, with the finance ministry estimating that its forecast for economic growth of 3% will be reduced to 2.4%.

According to the Minister of Families and Basic Services, Krista kiuru (SDP), their effect on the epidemic will be monitored for two weeks, after which conclusions will have to be drawn.

Last week, Yle asked the Ministry of Social Affairs and Health for an assessment of the impact of emergency braking. In its response to the request, the ministry sent a summary of various ministerial summaries that generally anticipated the need for a new round of financial support to businesses.

Millions in various industries

The memorandum said 120 to 150 million euros would be set aside for relief funding, which would mark the fifth time companies have received coronavirus-related support programs. According to the Treasury, companies have already received a total of around 765 million euros in such aid.

Most of the financial hardships the restrictions are likely to cause will be felt in the events industry, according to the memo, with losses estimated at 75 million euros for organizers of public events.

Meanwhile, the memorandum says that if the restrictions last for a month, the gym industry is expected to lose around 21.5 million euros, spas will suffer losses of 5.5 million euros and restaurant checkouts. could hemorrhage up to 100 million euros.

The assessment indicated that the Ministry of Education and Culture is budgeting around 36 million euros per month for the culture sector.

The ministry’s memorandum also noted other possible consequences of the restrictions, including an increase in the number of people gathering for private parties instead of attending public events, causing potential disruption and increased police work. .

“In extreme reactions, some citizens could protest against the restrictions,” said the memorandum.