Brussels Panic: EU economy moments from DISASTER as companies prepare for major recession

Mikael Ericson, the CEO of debt collection company Intrum has revealed, following data collected in their survey, most companies in Europe are preparing for a recession. In light of the coronavirus crisis, Intrum published a special edition report based on data from 4,800 consumers in 24 European countries. Italy and Germany ranked as the countries with the strongest belief that a recession was imminent, followed by Spain, Belgium, France, Sweden, Netherlands, Poland, Switzerland and Ireland.

The survey was conducted in May 2020 and was published alongside their annual European Consumer Payment report.

These reports help indicate citizens and companies’ ability to manage their household finances on a monthly basis.

While on CNBC Mr Ericson said: “It is clear now and maybe it is what we all expected.

“But companies all around Europe are now clearly preparing for a recession. They are preparing for the remainder of 2020.

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“Two out of three corporations that responded to COVID-19 during the crisis are saying they are now expecting a clear recession.”

Mr Ericson explained the quick changes businesses in Europe are having to make to adjust to this expected recession.

He said: “Almost three out of four respondents are saying they are now accepting longer payment periods from their clients to mitigate their customer relationships.

“That is also a very high number and we also have to be mindful that liquidity and cash are maybe the most important aspect of running a business today, especially in a situation like this.”

Mr Ericson explained that his debt collection company Intrum will continue to help and support businesses across Europe with late payments as they realise the severity of the economic downturn that is about to hit Europe.

He said: “As a company, we work with 80 to 85,000 clients throughout Europe, who we help and support with late payments.

“When late payments are growing it means the demand for our business is also increasing.

“Of course, we prepare ourselves to support our clients to basically collect on the late payments.”

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