Corona virus, the refugees in Greece and the tensions between Erdogan and the EU: there are no shortages of issues on the coalition committee.
- The coalition parties meet in Berlin on March 8th at 7 p.m. for a crisis summit .
- The meeting at the Chancellery is primarily about the consequences of the spread of the corona virus .
- Various measures to support the economy are being considered.
Update of March 9, 2020, 9:10 a.m . : The coalition wants to protect companies from the effects of the corona crisis . To this end, the short-time work allowance is to be expanded, as the coalition committee decided early Monday morning in Berlin after around seven hours of consultation. The federal government wants to help financially affected companies financially.
The government also wants to set the course for the future with an investment package and simplified procedures for planning transport and other projects.
In view of the plight of refugees in Greece , the Union and SPD also want to take in particularly vulnerable children in Germany. Kramp-Karrenbauer assumed that other countries besides Germany would join a corresponding Europe-wide “coalition of the willing”. There are signs that other countries are participating. France is obviously one of them. Therefore, she is very confident that the "coalition of the willing" will consist of more than two countries, she said on Deutschlandfunk.
The key points of the 14-page decision paper:
REFUGEES:
Greece is to be supported in the “difficult humanitarian situation of around 1000 to 1500 children in the Greek islands”. According to the coalition decision, these are children who are seriously ill or unaccompanied and are younger than 14 years. Negotiations are currently underway at European level to organize the takeover of these children in a “coalition of the willing”. "In this context, Germany is ready to take an appropriate share," said the coalition. The alliance also addresses the fighting in Idlib, Syria. Urgently needed humanitarian aid must be brought on site - Germany has currently made 125 million euros available. SPD leader Saskia Esken was "glad" on Twitter that Germany would now participate appropriately in an EU coalition of the willing.
PROTECTING THE ECONOMY IN THE CORON CRISIS (I):
The payment of short-time work benefits should be made easier and made possible for longer. For this benefit, the Federal Employment Agency pays 60 percent of the lost net wages if a company sends employees on short-time work. Terminations should be avoided in this way. According to the resolution, employers are now to be reimbursed social security contributions for the lost working hours - in full and not just 50 percent, as the coalition decided at the end of January.
Companies should also be able to use short-time work benefits if only 10 percent of the employees are affected by the loss of work instead of a third as before. Temporary workers should also be able to receive short-time work benefits. The coalition leaders had already decided at the end of January that the government could easily extend short-time work benefits from 12 to 24 months. The government should be able to put the regulations into force by means of ordinance, until the end of 2021. The innovations are to be adopted by the Federal Cabinet with the "Work-of-tomorrow law" by Labor Minister Hubertus Heil (SPD) this Wednesday.
PROTECTING THE ECONOMY IN THE CORON CRISIS (II):
The government wants to help financially affected companies financially: It announces proposals for appropriate liquidity support and a discussion with the trade associations and trade unions. CSU boss Markus Söder wrote on Twitter: “GroKo is dealing with the corona crisis. In addition to medical protection measures, we have also agreed a large aid package for the German economy. "
INVESTMENT:
The grand coalition wants to put together an additional investment package worth billions. "In the years 2021 to 2024, we will increase the federal investments by 3.1 billion euros each and thus expand the agreed investment paths and enable new priorities totaling 12.4 billion euros," the decision says. These funds are expected to come in particular from the 2019 surplus (EUR 13.5 billion).
In the next four years, eight billion euros are to be invested in federal transportation routes. The additional funds will also be used to reactivate brownfield sites in cities and municipalities for the construction of affordable apartments. From 2022 to 2024, the federal states are to receive one billion euros annually for social housing.
Basically, "the goal should be achieved to provide an additional 140 billion euros over the next ten years," says the paper. Within the framework of a “National Investment Alliance”, goals and investment policy guidelines are to be decided together with the states and municipalities.
TAXES:
The committee was unable to agree on the SPD's demand in particular that the reduction in the solidarity surcharge decided at the beginning of 2021 by half a year. In addition, there was only an audit mandate to the government "whether there is a national political consensus on the subject of old municipal debts". The SPD wanted to relieve indebted municipalities, the CSU is against it.
Among other things, the depreciation options for “digital assets” should be made easier to further increase investment activities. Partnerships should be better placed for tax purposes through new “investment options”.
PLANNING ACCELERATION:
Faster planning and approval procedures are important for the investments. These are to be achieved above all in the transport and digital sectors "still in this legislative period". The aim is to examine how legal proceedings can be streamlined. The government is expected to pass a draft investment acceleration law by July.
There should be faster planning and approvals for fiber optic expansion for the digital infrastructure. In order to better expand the cell phone network on the traffic routes, the coalition wants to delete the legal minimum distances from cell phone locations on motorways and main roads so that operators no longer have to resort to private property. Changes in species protection law and in the regulations on the environmental compatibility of infrastructure measures should be examined.
Corona Virus Crisis Summit with Merkel: The Federal Government has that on its agenda
Update 7.15 p.m .: The spread of the corona virus also has an impact on the economy . Therefore, the coalition leaders of the grand coalition meet at the Chancellery on Sunday evening to discuss possible measures that could help companies out of the virus crisis. Chancellor Angela Merkel had already arrived at the Chancellery at 5:30 p.m.
The coalition committee will discuss, among other things, a possible extension of the rules on short-time work and an earlier partial abolition of the solidarity surcharge. The meeting, headed by the Chancellor, will also focus on current developments on the Greek-Turkish border.
In addition to Merkel , Finance Minister Olaf Scholz (SPD) and the party and parliamentary leaders of the CDU, CSU and SPD, Health Minister Jens Spahn (CDU) and Foreign Minister Heiko Maas (SPD) also take part in the consultations.
It was expected that the round would also address the SPD's demands for government investments in infrastructure. According to reports, this could involve investments totaling EUR 12 billion over three years and additional funds of EUR 5 billion to strengthen growth.
The coalition round is likely to last well into the night. It was initially open in the evening whether there would be information from the public afterwards, for example, by fraction leaders Ralph Brinkhaus (CDU) and Rolf Mützenich (SPD) and CSU regional group leader Alexander Dobrindt.
Corona Virus Crisis Summit with Merkel & Co .: The Federal Government has that on its agenda
Statement of origin from March 8, 2020:
Berlin - Hamster purchases, delivery bottlenecks and canceled industry meetings: How can you mitigate the economic consequences of the coronavirus epidemic * ? The leaders of the Union and SPD want to advise on suitable measures on Sunday evening in the Chancellery. An earlier abolition of the solidarity surcharge and an expansion of short-time work are under discussion.
The SPD had proposed to abolish the solidarity surcharge for 90 percent of the payers that was actually planned for 2021 this summer in order to boost demand and consumption . If finance minister Olaf Scholz (SPD) can finance this without new debt and solve the technical problems of a changeover in the middle of the year, there is nothing to be said against it, said budget spokesman for the CDU / CSU parliamentary group, Eckhardt Rehberg (CDU) , the Frankfurter Allgemeine Sonntagszeitung .
Coronavirus crisis summit: new regulation on short-time work for Söder (CSU) "very important"
The coalition is also considering relaxing the rules on short-time work . SPD leader Norbert Walter-Borjans spoke on Deutschlandfunk about a possible longer payment period for short-time benefits. Minister of Labor Hubertus Heil (SPD) told the Stuttgarter Zeitung and the Stuttgarter Nachrichten , "We will facilitate the use of the instrument in times of economic weakness".
There is enough money for it: "The Federal Employment Agency's reserve has grown to EUR 26 billion." According to Handelsblatt information, it is about extended short-time working rules from the times of the financial crisis of 2008/2009, which could be put back into force.
Up to now there has been short-time work allowance if at least a third of the workforce in a company is affected by a significant loss of work. This threshold could be reduced to ten percent. It is also under discussion to relieve companies with short-time work on social security contributions. According to Markus Söder, a regulation on short-time work benefits would be "very important" in addition to possible guarantees or tax deferrals , according to the CSU boss at dpa .
Video: Share prices in the basement - Corona virus ensures roller coaster ride
Crisis Summit by Merkel & Co .: Refugee dispute with Erdogan also a topic
The coalition committee is also likely to talk about a reform of corporate tax, measures against high electricity prices and an acceleration of planning processes in the area of transport and digitization .
In addition to the spread of the corona virus, the coalition committee should also speak about the situation in the overcrowded refugee camps on the Greek islands and the situation on the Greek-Turkish border *. Thousands of migrants and refugees had made their way there after Turkish President Recep Tayyip Erdogan declared the borders to Europe open. There is currently a dispute in the Union on refugee policy issues.
On Monday, politicians and entrepreneurs will meet in Berlin for a German-Greek business conference. Chancellor Angela Merkel * and Greek Prime Minister Kyriakos Mitsotakis are also expected.
dpa / frs
* Merkur.de is part of the nationwide Ippen-Digital editors network.
