The Corona pandemic will have far-reaching financial consequences. We talk to Volker Reeh, business councilor for the city council, about how he sees the situation of Geretsried's business people.
Geretsried - The corona pandemic hits the economy hard. In the largest city in the district, smaller companies in retail and gastronomy in particular have a hard time, as Volker Reeh, the city council's business consultant, explained in an interview with our employee Dominik Stallein. He does expect the city to get its projects started largely without any problems. In his eyes, the long-term effects of the corona virus on the economy will be a particular challenge.
Mr. Reeh, do you dare to predict how strongly the crisis will affect Geretsried and its companies?
The dimensions are not yet foreseeable, so I do not want to make a forecast here. In particular, the long-term damage is not yet clear and will only become apparent next year or the year after next.
Which economic sectors in Geretsried suffer particularly?
The gastronomy is badly battered: Volker Reeh from the Geretsried list, business councilor for the city council, is worried about the effects of the corona pandemic on the city. Photo: hl / archive
© St.
The gastronomy in particular is extremely shaken. Of course, retailers also suffer badly, especially large-scale ones. If you have to close completely for eight weeks or more and don't generate any revenue during this time, that's an extreme challenge. Especially because many expenses have still been incurred, such as rents or running costs. Most cafes or restaurants are small businesses, which of course does not make the situation easier.
How so?
In small companies, owners and employees know each other personally. If the café owner and his employees stand behind the counter and you know each other for a long time, the employer knows that there is a family behind every colleague. You really want to keep these employees. But if they are sent for short-time work due to economic constraints and have to make do with 60 percent of the net wage, things quickly get tight. In addition to the pandemic, some dealers on Egerlandstrasse have to contend with the traffic situation through the construction site.
How are these entrepreneurs?
They have it twice as hard. Some work has been done in the past few weeks, when the shops were closed anyway, but the traffic routing problem continues for two or three years. It will be a big challenge, we don't need to talk about it.
The Geretsrieder still have to shop ...
… Right. For example, we notice that the shops on Sudetenstrasse are visited more often because they also offer a wide range and the traffic situation is easier. These dealers can benefit from it.
There are also profiteers in the current situation. Which companies can emerge stronger from the crisis?
The food sector - both production and trade - is in high demand. The pharmaceutical industry and hygiene article manufacturers are also very busy. In this situation, if you want to call it that, there are not only losers, but also winners. The competition in these sectors is merciless - the very large companies can offer special offers much faster and change production. This in turn makes it particularly difficult for smaller companies, even if they come from an industry that could potentially benefit.
It is unclear what will happen next: How do the entrepreneurs assess their future prospects?
Retailers are very, very far from reaching last year's sales. And that will continue because, for example, shopping with mouth-nose protection is not as atmospheric as a leisurely stroll. So there is no great desire to buy. There is also an uncertainty: The larger entrepreneurs fear that the corona wave will last at least until autumn. The majority assume that the situation will continue to do so over the next year. For companies, this means that, for example, cutbacks have to be made in production because hygiene and distance rules must be observed.
Many companies are battered - trade tax is therefore likely to be significantly lower. Do you expect a big hole in the urban household?
Not yet. There are requests to suspend tax payments. The taxes that we expect for this financial year, however, must be borne in mind - especially in 2018 and 2019. Large companies in particular, which bear most of the tax burden, now still have a certain amount of liquidity because the past few years have been successful. I therefore count on the fact that we will complete the projects that have already started well, be it the indoor pool or the city center. I am optimistic that we will not face major budget problems this year because we have large reserves.
And then?
Perhaps only compulsory tasks will be possible in the coming years. We will also be able to do that, I am convinced. But we'll have to be a little more careful. One or the other investment may have to be put on hold, some things could fail. Future projects in particular, where there is still little concrete, like the Böhmwiese, could be postponed.
So will there be financial problems for the city in the next few years at the earliest?
It will definitely be a big challenge. If the current crisis translates into tax cuts, it will be harder.
Are there any offers from the municipality to help local companies?
This is done through our Economic Promotion Unit and there is telephone advice. I believe that most entrepreneurs contact their trade associations first. There are many inquiries that mainly concern individual problems of entrepreneurs - the trade association helps much more specifically.
What about commercial real estate owned by the municipality?
We don't have too many commercial spaces. There are few inquiries about this, but - and this is also important - the administration treats them with great discretion.
You yourself have been running a company for decades (Reeh is the managing director of the fish and delicatessen of the same name in Geretsried; editor's note). Can you reveal how the situation has or still has an impact on you and your company?
So far we have come out of the situation unscathed. People continue to buy groceries, mainly because the restaurant is closed. Weekly open-air markets, with lots of people to meet, were special experiences during the lockdown that were gladly accepted.
And that, although you can only meet at a distance?
Yes, of course. But I hope that won't be the rule.
What do you mean?
I hope that the safety distance, which is of course necessary at the moment, does not lead to people being further apart from each other. Personal proximity is so important, and Geretsried suffers anyway from the fact that in many places it is anonymous. I very much hope that in future people will move closer together instead of going apart.
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