Swedish government to extend measures for companies hit by COVID-19 – reports

STOCKHOLM, Nov 9- Sweden’s government will extend wage support and income compensation for companies hit by the coronavirus pandemic and measures to halt its spread, Swedish media reported on Monday. While Sweden has opted against the kind of strict lockdowns seen across much of Europe, businesses have still been badly hit as people work from home, stop…

STOCKHOLM, Nov 9 (Reuters) – Sweden’s government will extend

wage support and income compensation for companies hit by the

coronavirus pandemic and measures to halt its spread, Swedish

media reported on Monday.

While Sweden has opted against the kind of strict lockdownsseen across much of Europe, businesses have still been badly hitas people work from home, stop travelling and avoid crowds.

The economy, which contracted 8.3% in the second quarter,has started to rebound, but a wave of infections across Europeand a rise in new cases in Sweden have put the recovery underthreat.

The government will extend by six months a furlough schemethat pays a proportion of wages of employees who are on shorterhours, Swedish radio reported, without naming any sources.

The scheme was due to run out at the end of the year.

The minority coalition will also retroactively extendsupport to companies which saw significant revenue falls as aresult of the pandemic through to the end of October, newsagency TT reported, citing Mats Persson, economic spokesman forthe Liberal Party.

The Liberal party is not part of the government, butsupports the ruling minority coalition’s budgets.

Sweden has seen a surge in new cases of COVID-19 in recentweeks with infections passing the peaks set in spring. Thegovernment has not imposed a lockdown, but has tightenedrecommendations on social distancing across much of the country.

(Reporting by Simon Johnson, editing by Ed Osmond)