More than half of European small and medium-sized enterprises (SMEs currently provide jobs for two-thirds of Europeans) are worried about their survival in the next 12 months, foreign media said, citing a survey released by McKinsey consulting on the 22nd.

According to London, October 22 (Reuters) - Europe's accelerating epidemic is forcing governments to impose new restrictions on various activities, sparking speculation that the government will adopt a new blockade. In addition, the warning about the impending bankruptcy tide of enterprises is also increasing. The International Monetary Fund and other agencies are urging European governments to step up support to help businesses fight the new outbreak.

McKinsey's survey of more than 2200 companies in five countries - France, Germany, Italy, Spain and the United Kingdom - found that 55% of the companies expected to close down by September next year if their revenues remained at their current levels. According to the current trend, it is expected that one tenth of SMEs will apply for bankruptcy within six months.

"It's a huge burden on the financial industry," said zdrafko mladnov, one of the authors of the report Other effects will include a surge in unemployment and a disincentive to macroeconomic investment.

Economists interviewed by Reuters predicted last month that the euro zone economy would shrink by about 8% this year and grow by only 5.5% next year.  They also warned that next year's economic recovery is vulnerable to further spread of the new coronavirus.

According to the definition, small and medium-sized enterprises refer to enterprises with 250 employees or less. In Europe, these companies employ more than 90 million people, and their small size makes them vulnerable to cash flow crises. In Spain, for example, 83% of the 85000 companies that have closed down since February have fewer than five employees.

The report pointed out that so far, some rescue measures taken by European countries have saved thousands of enterprises from bankruptcy. But as these measures gradually stop in some cases, both the German and the Bank of England have warned that the number of corporate bankruptcies could increase.

"Policymakers must do everything in their power to contain the epidemic and its damage to the economy, and not withdraw support measures too early to avoid a repeat of the global financial crisis," the IMF said

"For enterprises, current policy measures need to go beyond liquidity support to ensure that insolvent but viable businesses can continue to operate." The organization mentioned measures such as creating facilities for debt restructuring.