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Corona resolutions: Business warns of the consequences of the extended shutdown

2020-11-27T21:05:01.846Z

Industry, tourism, handicrafts, trade: the German economy is sounding the alarm because of the extended shutdown. The associations are calling for more planning security and rapid disbursement of state aid.



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Closed hotel with restaurant in Cologne: "The situation in our industry is very dramatic"

Photo: INA FASSBENDER / AFP

The extension of the corona shutdown to at least December 20 has caused uncertainty in many sectors of the German economy.

For example, the Federation of German Industries (BDI) estimates that the latest resolutions by the federal and state governments will affect economic activity and consumer sentiment for the rest of the year.

"This will initially affect the temporary economic recovery in the coming year," said BDI President Dieter Kempf.

"The air is getting thinner for more and more entrepreneurs in winter," warned Kempf.

Although the measures would offer short-term orientation, they would not provide a sufficient planning horizon for the economy.

"The key must be to reduce the risk of yo-yo shutdowns for the economy and society," says Kempf.

Gastronomy is affected by the restrictions even more directly than industry.

"The situation in our industry is very dramatic," said the general manager of the German Hotel and Restaurant Association Dehoga, Ingrid Hartges.

"Now the salaries are due for November, and the next rent is due."

Hartges urged a quick disbursement of the federal aid promised for November.

In the current month, businesses affected by the closure were able to claim around three quarters of the monthly turnover from November 2019.

You also assume that the aid will continue to be paid in December to the same extent, said Hartges, who put the industry turnover in December last year at around eight billion euros net.

Many craft businesses are also directly or indirectly affected by the closings.

"They urgently need support in order to survive this time and to be able to maintain their operations," said the President of the Central Association of German Crafts (ZDH), Hans Peter Wollseifer.

He welcomed the fact that the federal and state governments had promised »December aid« for the period of the extended shutdown.

"However, action must be taken quickly after this announcement."

For the retail sector, the federal and state governments have not only extended the corona restrictions, but also tightened them.

Now the industry is warning of dramatic consequences.

While retailers have been allowed to open largely without restrictions so far, fewer customers are now allowed to shop at the same time in stores with more than 800 square meters - including almost all supermarkets.

"The big losers are many inner-city retailers, who are losing customers and sales under the Corona conditions," said the managing director of the German Retail Association (HDE), Stefan Genth.

Instead, more will be bought on the Internet.

Edeka boss Markus Mosa warned that the grocery trade could “not meet the high demand, especially during the Christmas season” under these conditions.

Genth and Mosa received encouragement from the chief economist of the Federal Association of Medium-Sized Enterprises, Hans-Jürgen Völz, who described the resolutions as a “new low blow” for stationary retail.

Völz also spoke of a strong economic impetus for large online mail order companies: "The classic Christmas business in November and December has already been done for many businesses."

Icon: The mirror

fdi / dpa

Source: spiegel

All business articles on 2020-11-27

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