Employment agency in Oberhausen (archive photo): Federal grant expected
Photo:Fabian Strauch / dpa
The Federal Employment Agency (BA) recorded a deficit of more than ten billion euros in the first six months of 2020. A corresponding report in the "Frankfurter Allgemeine Zeitung" ("FAZ") has since been confirmed by a spokeswoman for the authority, but did not give any forecast for the second half of the year. The "FAZ" quoted from the agency's report, according to which "further, sometimes considerable additional expenditure" is to be expected for the second half of the year.
The reason for reaching into the reserves is the high payments for short-time work benefits, more unemployment benefits and social benefits in the corona crisis. The agency had to spend 7.85 billion euros on short-time work benefits, including social benefits. In 2020, the budget was set to 550 million euros.
Deficit also possible in 2021
The figures come from the report on the financial situation of the unemployment insurance, which are presented to the administrative board of the Federal Agency - and they are not unexpected. The chief executive of the Federal Agency, Detlef Scheele, had already announced a deficit of 30 billion euros for 2020 and also considers a deficit in the following year to be possible.
According to previous scenarios by the employment agency, the reserve of almost 26 billion euros will be used up in 2020, which is why the federal government needs to step in. It is still uncertain whether this should be done as a grant or a loan.
In any case, the budget would require approval by the federal government if the federal government were to step in. "That would not be in the interests of the BA and its board of directors," Scheele said last. The self-administration made up of representatives of employees and employers could not want someone else to decide on their budget: "In my opinion, this is a special situation for the constituent element of self-administration."
Icon: The mirrorapr / dpa / Reuters
