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Budget aid: controversy is mounting in Germany

2020-12-03T12:55:29.684Z


The very high cost of supporting businesses reopens the debate on budgetary rigor.The pandemic continues and the coffers are emptying. This is the worrying observation facing the German federal government, which at the start of the health crisis, had wide open its portfolio to companies. A record budget of 130 billion euros had been planned over two years to help the economy. On the eve of the second confinement, in October, Berlin even promised to compensate up to 75% for the


The pandemic continues and the coffers are emptying.

This is the worrying observation facing the German federal government, which at the start of the health crisis, had wide open its portfolio to companies.

A record budget of 130 billion euros had been planned over two years to help the economy.

On the eve of the second confinement, in October, Berlin even promised to compensate up to 75% for the loss of turnover of establishments - mainly hotels and restaurants - generated by the closures.

Read also:

Germany strengthens its support plan and overcomes its budgetary rigor

While the latter should be extended until January 10 and the number of new infections is struggling to decline, this spending momentum is called into question.

"

Aid of this magnitude is difficult to sustain for several months

", warned in the daily

Süddeutsche Zeitung,

Marcel Fratzscher, president of DIW, one of the main economic institutes.

The Minister of Finance has assessed the amount of the "plan

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Source: lefigaro

All news articles on 2020-12-03

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