The corona crisis affects almost all sectors of the economy. The grand coalition in the planned stimulus package is still far apart.
- The corona crisis has a major impact on the economy.
- Despite various easing , the economy is not picking up steam.
- The grand coalition wants to step in with an economic stimulus package.
Update from Wednesday, 03.06.2020, 12.15 p.m .: The leaders of the grand coalition have continued their negotiations on a multi-billion euro stimulus package in the Corona crisis . Participants said on Wednesday that the core issues had not yet been resolved. This includes incentives to buy cars from taxpayers' money, the assumption of old debts by the municipalities and tax relief.
The participants did not expect a quick agreement. Rather, the consultations could continue into the night.
Update from Tuesday, June 2, 2020, 4:34 p.m .: No agreement is yet in sight regarding the comprehensive economic stimulus package of the grand coalition. There was a great need for advice - therefore, according to information from coalition circles, all sides agreed to interrupt the negotiations before midnight.
According to information from the German Press Agency, the talks should then continue on Wednesday morning (June 3, 2020) after the cabinet meeting at around 10 a.m. The reason given was that people wanted to talk about the various individual topics without time pressure.
There are around 60 suggestions to be discussed, said SPD leader Norbert Walter-Borjans before the negotiations began. "It will take a long time and probably will not end today." There are already proposals that can be agreed, but also topics on which the opinion between the SPD, CDU and CSU diverge widely.
Coalition advises on stimulus package: scrappage bonus is a point of contention
First announcement on Tuesday, June 2nd, 2020, 1:52 pm: Berlin - On Tuesday (June 2nd, 2020 ) the leaders of the grand coalition will meet in the Berlin Chancellery for talks. A billion-dollar stimulus package is to be advised, which is intended to cushion the negative consequences of the corona crisis . There are suggestions on the table to support families, companies and municipalities.
Among other things, a car purchase premium to support the auto industry and help for municipalities are being discussed. Families should also be supported with a children's bonus in order to increase purchasing power. The amounts 300 and 600 euros fell in advance.
Corona crisis: incentive to buy cars controversial
The so-called scrappage bonus is particularly controversial. So has SPD -Parteichef Norbert Walter-Borjans before the deliberations against a purchase premium for cars pronounced with internal combustion engines. His party refuses "that taxpayers should even pay for discounts on diesel and gasoline already produced," he said in the ZDF morning magazine.
Rather, government aid should be used to “lead technology into the future”. Cars with conventional technology should not be cheaper at the expense of taxpayers.
Climate activists comment on the corona stimulus package
The climate activists at Fridays For Future made similar comments. The grand coalition should in its economic plans in Corona times have the actual quality of life and the interests of people in mind and not the interests of large corporations.
▸ € 9 billion for Lufthansa
▸ € 5 billion purchase bonus for new cars (planned)
▸ € 5 billion scrappage bonus 2009
If they say that there is no money for climate protection, culture, nursing staff, education, families and children: Yes, but it is somewhere else ¯ \ _ (ツ) _ / ¯
The current crisis should not be used politically as an excuse against an ambitious climate protection policy and a functioning welfare state. It is now just a matter of consistently setting the course for a socio-ecological turnaround that takes everyone along and leaves no one behind.
Coalition advises on economic stimulus package - economy against scrapping premium
The Monika Schnitzer economy also spoke out against the scrappage bonus. "The greatest danger of an incorrectly designed economic stimulus program is that it stops the necessary structural change," explained the Munich professor in the "WirtschaftsWoche". "It's wrong for so many reasons that I don't even know where to start."
This project is also controversial within the Union. While the Baden-Württemberg CDU leader Thomas Strobl sees this as an important impetus for the auto industry , Union parliamentary group vice-president Andreas Jung rejects an old-school bonus.
Support for municipalities in the corona crisis
Federal Finance Minister Olaf Scholz (SPD) spoke out to support the local authorities . Among other things, he wants to help the municipalities by assuming old debts. Walter-Borjans also emphasized that the “old debts that hinder investment are getting away” and should be transferred to the federal and state governments.
However, this project is rejected by the Union group. It suggests that the federal government should contribute more to the costs of accommodation for Hartz IV recipients and suspend the trade tax levy for two years.
Over 7 million people work short-time because of Corona
The Munich Ifo Institute said that almost all sectors of the economy are affected by the corona crisis. In May, 7.3 million people in Germany were on short-time work . "This number has never been so high," said Ifo labor market expert Sebastian Link on Tuesday. "In the financial crisis, short-time working peaked in May 2009 at just under 1.5 million people." (With agency)
List of rubric lists: © picture alliance / dpa / Michael kappeler
