WSJ News Exclusive | Europe Keeps Aiding Companies to Avoid Surge of Covid-19 Insolvencies

Rousselle Industrie SA, a maker of machinery for paint manufacturers in northern France, almost collapsed in 2020 after the pandemic disrupted supply and its clients’ businesses.

The 10-person company was saved by the equivalent of $360,000 in loans under a government program that guaranteed debt and deferred interest payments for 12 months.

One year later, the company is still facing repeated delays in supplies and payments, making the prospect of servicing the debt difficult. Aware of the troubles facing Rousselle Industrie and hundreds of thousands of other companies, the French government delayed loan repayments by one more year.

“We would not have survived this complicated phase without the government’s help,” Eric Plaisant, the company’s chief executive, said. “There’s still a lot of uncertainty.”

Economies such as the U.S. and China are quickly bouncing back. But in Europe, where vaccination programs have lagged behind other regions and economies have been slower to adapt, companies continue to struggle. To prevent an avalanche of insolvencies and a new financial crisis on the continent, governments are extending support measures.