Undesirable Side Effect of Coronavirus Measures: Zombies?

German economists fear that in the coronavirus crisis, the number of zombie companies will increase. In the current ifo and FAZ Economists Panel, 86 percent of the participating economists estimate that the number of zombie companies in Germany has “increased” or “sharply increased” since March 2020. In their opinion, the temporary waiving of the obligation to file for insolvency plus the short-time work allowance pose the greatest risk for the emergence of zombie companies.