"Tough" struggle for Corona billions: GroKo participants give insight - nobody wants to "give up" Trump

The GroKo wants to put together an economic stimulus package on Tuesday. But there are arguments. Even economists warn of auto help. Climate activist Luisa Neubauer becomes clear.

• The German economy is suffering from the Corona crisis - a multi-billion euro stimulus package should help.
• The coalition committee wants to find a solution on Tuesday (June 2) . But there is a risk of argument.
• The "scrappage bonus" is a particular focus. Several countries are calling for it - but economic experts are warning.

Update of June 2, 7:25 p.m .: The coalition leaders of the CDU, CSU and SPD struggled on Tuesday for hours over the planned multi-billion euro stimulus package in the Corona crisis . There were no agreements until around 7:00 p.m., several participants said.

Because of the planned interruption, no interim results were expected in the evening . At the end of the day there would be a complete package, it was said from participants - neither side wanted to hand over negotiating masses on individual points at an early stage . Some of the most controversial points, such as a possible premium when buying a car or help for local authorities, should only be discussed at the end - probably on Wednesday.

The discussions were tough, but serious, concentrated and factual , according to the participants. Everything is in the flow. Since all points should be implemented quickly, full time will be used on Tuesday and Wednesday to get everything on the way. Citizens expected that Germany would be brought out of the crisis with sustainable ideas - the parties involved would know this. For this reason too, you have to talk intensively about every detail.

There was a very open discussion about the assessments in connection with the effects of the various economic measures, said further participants. There was therefore no open dispute. There were reports that demands were also being raised from the SPD not to impose a cost limit on the measures, as requested by CSU boss Markus Söder .

Corona stimulus package: Merkel's GroKo in trouble? New demands are being made 

Update from June 2, 6:00 p.m .: The GroKo apparently lost hope early on that they would agree on an economic stimulus package on Tuesday (see below). The first prime ministers are already making further demands for the multi-billion dollar package: Lower Saxony's prime minister Stephan Weil (SPD) spoke out in a newspaper interview for a double the one-time child bonus. 

The amount should be increased to 600 euros, said Weil of the Neue Osnabrücker Zeitung . This would honor a population group that has suffered particularly in the past few months. The discussion initially involved 300 euros per child. North Rhine-Westphalia's Prime Minister Armin Laschet (CDU) had also previously mentioned 600 euros as the amount for the aid.

Weil also advocated raising the minimum wage disproportionately to general wage developments - and defended his call for a new scrappage bonus . The money should "not benefit the manufacturers, but buyers," he said.

Economic stimulus package: GroKo apparently before tough negotiations - talks should continue on Wednesday

Update from June 2, 4:30 p.m .: Around 60 suggestions have to advise the heads of GroKo - at the beginning of the negotiations, it was therefore said that the consultations on Tuesday would only go until midnight and should continue on Wednesday at around 10 a.m. 

For SPD leader Norbert Walter-Borjans , the focus should be on investments in future issues, help for families and over-indebted municipalities - for the prime ministers of the automobile countries of Bavaria, Lower Saxony and Baden-Württemberg, a kind of purchase premium for cars must be found. In addition to these main points of dispute, it should be about investments in infrastructure, future technologies and climate protection and a preference for the partial elimination of solos, as well as relief in electricity prices and further help for showmen, solo self-employed or artists.

Merkels GroKo before decision on stimulus package: "Deutsche Greta" chooses drastic words

Update from June 2, 12:19 p.m .: If the top of the big coalitions meet from 2 p.m. , tough negotiations about the Corona economic stimulus program are expected. In the morning, Ver.di, Fridays for Future and the Paritätische Wohlfahrtsverband ushered in the day of the negotiations with a joint press conference - in a "historic moment", as climate activist Luisa Neubauer put it.

Berlin: Ecologically and socially just: Luisa Neubauer, climate protection activist from Fridays for Future, and Ulrich Schneider, managing director of the German Parity Welfare Association - general association at a press conference

© dpa / Kay Nietfeld

Under the motto " Ecologically and socially fair ", the associations and activists are calling for the stimulus package to be geared towards "the actual quality of life and the interests of people", not towards large corporations. Luisa Neubauer said of the joint appearance: "We are connected by the certainty that an effective, just socio-ecological corona policy is not only possible, but also absolutely necessary." She called for an increase in the CO2 tax for offsetting in other places "Listed companies without binding climate targets are not allowed to receive government aid and a scrappage bonus for internal combustion is simply irresponsible ." Christine Behle, Vice President of Verdi, cited a turnaround in traffic by doubling public transport and mobility checks as an example.

Merkel's GroKo in billion-dollar poker: scrappage bonus divides parties from SPD to Greens

First report from June 1, 2020: Berlin / Dresden - An often reviled economic policy tool is making a comeback in the Corona crisis - and could be a real bone of contention as early as Tuesday afternoon when the struggles for a stimulus package come together when the heads of the GroKo meet in the Chancellery : The scrappage bonus .

The mixed situation is somewhat bizarre - because the fronts run across (almost) all party borders. The CDU and large parts of the SPD are against a re-allocation of the car purchase premium. So warned Union Group Chief Ralph Brinkhaus especially before printing the lobby on this issue. The SPD faction vice Sören Bartol and Matthias Miersch were also clearly negative at the weekend.

But there are also big supporters. Including the SPD prime minister of the VW state of Lower Saxony, Stephan Weil, and even a Greens with Winfried Kretschmann . As Baden-Württemberg's father, he heads the heavily automotive “Ländle”. And received criticism from its own ranks at the weekend. If only very cautious.

View of the (economic) engine: Winfried Kretschmann (Greens) visiting Daimler.

© dpa / Franziska Kraufmann

There is also approval from the home of BMW and Audi . State head Markus Söder (CSU) reiterated in the Welt am Sonntag his call for incentives to buy new cars: "We are taking old cars off the market and replacing them with clean vehicles of the latest generation." According to his CSU colleague and Federal Minister of Transport Andreas Scheuer , the premium should be even apply to cars with internal combustion engines . You have to "get the heap empty so that it can be reproduced," he said in an interview with the newspapers of the Funke media group .

Scrappage bonus in focus: Institute warns of "flash in the pan" - and negative effects for other industries

Quite piquant: Even a new overview study by the business- related Ifo Institute leads to a more or less devastating judgment on the scrapping premium. In the 2008/2009 financial crisis , the premium boosted car sales, study director Felix Rösel said on Whit Monday. "However, the hangover followed the party," he added.

According to 15 "data-based studies" on scrapping premiums in various countries - including Germany and the United States - the ifo experts concluded that the premium primarily ensures that car purchases are brought forward. The new paper reads that it is “little more than a flash in the pan”.

"The bottom line is that most studies give no indication that the premiums sell more cars," said Rösel. Even more: other sectors could suffer from the measure. "Those who prefer buying a car have less money for furniture at the moment," said the expert. "The plus of the automotive industry can therefore quickly become the minus of other sectors."

GroKo stimulus package: Greens in trouble too - Hofreiter avoids announcement to Kretschmann

But the topic is delicate. The auto industry is calling for help. And even in the number one eco party, they are afraid to give clear contra. The Green Group leader Toni Hofreiter , who is rarely embarrassed by clear words, for example, told the taz that Kretschmann came “in this case to consider, I to another. But you can't deny him credibility there ”.

"The longer the stiffness lasts, the more dangerous it becomes," said the President of the Association of the Automotive Industry (VDA) , Hildegard Müller, lastly. Short-time workers threatened to "become unemployed in many industries". However, dividend payments from car manufacturers, who are now hoping to receive funding through purchase bonuses, also cause controversy.

The potentially costly scrappage bonus is by no means the only item on the wish list of GroKo politicians. In total, it could be around 75 to 80 billion euros - distribution unclear. Söder had requested an upper limit of 100 billion euros. An overview:

Coalition negotiates economic stimulus package - GroKo's long wish list:

Tax cuts: The SPD has proposed to partially abolish the solidarity surcharge from January 2021 to July. CSU boss Markus Söder is in favor, he calls a tax cut "mandatory". Union faction leader Ralph Brinkhaus says that it is not technically feasible to prefer soli abolition to July.

Help for municipalities: Finance minister Olaf Scholz (SPD) wants to discharge old debts to heavily indebted municipalities - cost point for the federal government: 22.5 billion euros - and to compensate for the breakdown of trade tax revenues; the federal government is to give 5.9 billion euros, the federal states the same amount. The Union is strictly against it

Help for employees: Scholz wants to double the duration of short-time benefits * from a maximum of one year to two years - but only temporarily.

Help for families: The SPD wants a one-time family or child bonus of 300 euros, especially for normal and low-wage earners. Söder considers a family bonus to be "sensible". The Union is skeptical. Brinkhaus has flatly rejected a higher Hartz IV rate.

Aid for small businesses:  According to Scholz's proposal, emergency aid for small businesses, the self-employed and freelancers - a total of 50 billion euros have been planned so far - should be extended, especially for sectors that are particularly affected, such as gastronomy, travel agencies, pubs or showmen. The aid does not have to be repaid.

Aid for the railways:  Minister of Transport Andreas Scheuer (CSU) wants to give the railways 5.5 billion euros to increase equity. 2.6 billion euros are to flow into the modernization of the railways. A paper from the Ministry of Finance also mentions the equity increase at DB.

Money for digitization:  Scheuer proposes 8.5 billion euros for investments in the digital infrastructure. Brinkhaus calls the rapid digitalization of administration a central project in the economic stimulus package. A surge in digitalization in public administration is also considered necessary at Scholz.

Money for "innovative fuels":  Scheuer plans to invest 1.9 billion euros in the research and development of alternative drives and fuels. Scholz, for example, also includes the establishment of a hydrogen infrastructure as one of the possible measures in the Corona crisis. Minister of Education Anja Karliczek (CDU) demands a total of ten billion euros - among other things to promote green hydrogen.

fn / AFP / dpa

* Merkur.de is part of the nationwide Ippen-Digital editors network.

List of rubric lists: © dpa / Kay Nietfeld