Thanks to the multi-billion dollar economic stimulus package, Germany is expected to come out of the corona-related economic crisis with a “boom”. The reactions in the district are different.
County - 130 billion in size. A temporary reduction in VAT from 19 to 16 percent (7 to 5 in the reduced rate). A one-time family bonus of 300 euros per child. The federal government assumes 50 percent of the municipal trade tax losses. No purchase premium for cars with combustion engines. These are the striking cornerstones of the economic stimulus package launched by the Federal Government. Reactions in the district:
Opinions on the economic stimulus package: The mother
Claudia Reichhart from Peißenberg, mother of two children (11 and 12): “I am a bit critical of the package. The state is putting out quite a bit of money. 300 euros is a nice treat, but it also has to be paid. If you earn a lot, you get the bonus, I don't think that's right. I think other things would be more necessary. I would prefer it to really start in the schools and have regular classes again. I am happy to give the money back when the schools are open to everyone again every day from Pentecost. ”
Opinions about the economic stimulus program: The car seller
Richard Rieser from Peiting, Managing Director of Sales at Auto Rieser: “Of course the support would have been greater with a purchase premium, but with the reduction in value added tax the customers are also accommodated and that helps us all in many other areas. You have to look at this particular situation in the pandemic. I am therefore glad that the federal government has found a way to relieve all citizens and not just car buyers. The purchase bonus from 2009 was a boost for customers who wanted to buy a vehicle to buy it earlier, even for some customers who would otherwise not have bought a vehicle. Which led directly to the fact that it became all the quieter afterwards. From today's perspective, we cannot judge whether the reduction in VAT will increase sales. The individual who is worried about his job or is in an insecure employment relationship may simply put his savings aside. Nevertheless, I firmly believe that this is a clear sign and we hope to be able to announce a start in our industry from July. Yes, we felt the corona crisis. From March 21st to May 30th we had a moderate to no trade. So this year will be exciting. "
Opinions on the economic stimulus package: The advertiser
Kornelia Funke from Schongau, executive board team of the advertising community: “The reduction in VAT definitely sends a good signal to all consumers. It is a good approach, as this leads to savings for every individual when buying and not only subsidizes individual product groups - for example with a car premium. At first glance, it helps retailers. It will only become clear in a few months whether consumers' buying mood will improve or be stimulated. It is also positive that it applies to all product groups. Targeted help for retailers, especially in city centers, is definitely quick and unbureaucratic support from the municipalities. There is currently a lot of potential, especially in tourism. A targeted advertising campaign would therefore be extremely important for many municipalities this year. ”
Opinions about the economic stimulus program: The dealer
Florian Lipp from Weilheim, Managing Director of Rid department store: "I am very pleasantly surprised." Lipp describes the economic stimulus package as "a well-rounded and good thing". The lowering of VAT is "the most socially applied and fairest instrument", because it actually matters to the citizen. "Everyone benefits from it." Also the trade, because it would have a "dampening effect" on prices, which would boost sales. The department store manager expects that there will be more and more bargains, especially in the clothing trade.
Opinions on the economic stimulus program: The district administrator
Andrea Jochner-Weiß from Wilzhofen, District Administrator: “With a total package with 57 individual points, surprises are always to be expected. Indeed, I would not have expected a temporary reduction in VAT. The economic stimulus package also stabilizes the income situation for the municipalities and the district - in times of increasing expenditure for the pandemic, not least in the area of our health care and social expenditure. This means that the ability to make municipal investments that is still necessary is at least partially preserved. I think skepticism doesn't do much in such a unique situation. The economic stimulus package is based on several pillars. The budgets of all municipalities are supported with an intended compensation of the trade tax losses. This is much more effective and fairer than the unilateral debt relief initially envisaged by the Federal Minister of Finance for some of the municipalities. The highest possible replacement of trade tax losses helps all cities, markets and municipalities. Unfortunately, it is currently unclear whether the local pay-as-you-go financing will be included, i.e. whether these bodies benefit from the district and district levy. The solution cannot be that the burglaries are compensated for at the municipal level, but remain open to counties and districts. Basically, it helps a lot if the federal government contributes significantly more to the costs of accommodation for Hartz IV recipients. Corona-related expenses of EUR 5 million and a total of EUR 15 million in accommodation costs are expected for 2020. To do this, we would need approx. Spend an additional 2.7 million euros this year on the district budget as a district share I hope that these additional expenses will be largely compensated for, at least by the higher reimbursement share. "
Opinions on the economic stimulus program: The IHK representative
Jens Wucherpfennig from Weilheim. Head of the IHK office: “The IHK for Munich and Upper Bavaria welcomes the package. It combines important economic stimuli and investment incentives with financial relief for companies. It also broadly supports urgently needed modernization projects. The bridging aid will prove to be a real lifebuoy for many companies and self-employed who are in need. Without it, we would certainly have to expect a lot more bankruptcies in the district. It is important to us that the measures potentially also pay off for every company. What we lack before is the reduction in corporate tax to 25 percent and the reduction in the price of industrial electricity to less than four cents / kilowatt hour. We also miss the immediate abolition of the solidarity surcharge. The reduction in value added tax will certainly influence purchasing behavior and ensure more demand. But you have to consider the considerable administrative overhead, especially for retail, hotels and restaurants. ”
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