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Germany to spend billions of euros in Covid aid to keep companies afloat in 2021
November 14, 2020
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The aid will be given from January to self-employed people and businesses. The November coronavirus aid package from Berlin to compensate firms affected by coronavirus lockdown measures comes to the sum of 14 billion euros (12.56 billion) this month. The German government had only expected to pay out 10 billion euros (£8.97 billion).
Germany’s economy is expected to shrink slightly less than projections showed.
This is due to strong economic output over the summer period.
Now the second wave of the pandemic is predicted to have an adverse effect on growth at the beginning of 2021.
German companies can get up to 200,000 euros (£179.39 billion) a month to cover overheads such as rent.
Self-employed workers can get up to 5,000 euros (£4,480).
Germany has the finances to release more stimulus measures if needed.
The pandemic has not affected Europe’s largest economy as much as other nations.
On Thursday, Germany’s Finance Minister Olaf Scholz said the nation planned to borrow more than 300 billion euros (£269.09 billion) in total this year and in 2021.
Mr Scholz said he would consider carefully what relief measures to fund.
Brussels-based think tank Bruegel has said Germany has been able to offer 8.3 percent of its economic output in support for coronavirus financial relief.
In comparison, the US has given 9.1 percent of its economic output in coronavirus aid packages.
Berlin plans to extend its partial lockdown into December.
On Friday, Germany hit a daily coronavirus record with 23,542 cases.
German government spokesman Stefan Seibert said measures “were not expected to be relaxed” by next week.
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Ministers are set to meet on Monday to discuss extending the country’s partial lockdown.
At present, the nation has closed all gyms and entertainment venues.
This has slowed the spread of the virus.
However, Health Minister Jens Spahn said it was too early to predict the long-term effects of the partial lockdown.