The GroKo has agreed on a corona stimulus package. The result after long negotiations is financial aid of 130 billion euros.
- The German economy is suffering from the Corona crisis - a billion-dollar stimulus package is now to help.
- The leaders of the grand coalition spent a full 21 hours discussing the issues. The result is a package worth 130 billion.
- The new package is ready! An overview of the new features can be found in the update from June 3, 10:38 p.m. Opposition politicians criticize the program as "incredibly expensive" and "half-baked" (see update June 4, 7:24 am).
Update of June 4, 8.27 a.m .: The GroKo has decided on an economic stimulus package to boost the economy in the corona virus crisis . Or as Finance Minister Olaf Scholz (SPD) said on Wednesday evening after long and difficult negotiations: The program should help Germany come out of the crisis "with a bang". Chancellor Angela Merkel (CDU) said the coalition is trying to do the best in a difficult situation and prevent worse. It is about securing jobs and pushing innovations for the future. The cost is around 130 billion euros for the next two years. Who should benefit from the package and how:
Corona stimulus package: This is how help should reach consumers
The leaders of the CDU, CSU and SPD surprisingly agreed on a temporary reduction in VAT in the coronavirus crisis . This is intended to strengthen domestic consumption. That costs around 20 billion euros. Specifically, from July 1 to December 31, 2020, the VAT rate is to be reduced from 19 percent to 16 percent and the reduced rate from 7 percent to 5 percent. The reduced rate applies to everyday goods such as food.
Merkel Corona stimulus package: More money for families and day care centers
Families get more money . A one-off child bonus of EUR 300 per child is planned for each child entitled to child benefit. The bonus must be taxed, but it is not counted towards the basic security. For extensions, conversions or new constructions of daycare centers and crèches there should be an additional one billion euros - also to improve the hygiene situation in times of Corona .
Corona crisis: GroKo decides on stimulus package - incentives for drivers
In the Corona crisis, the grand coalition decided against a purchase premium for low-emission gasoline and diesel cars - plans for this were highly controversial. The SPD leadership was against it. The demand for gasoline and diesel cars should be boosted with the lower VAT, as CSU boss Markus Söder made clear.
The tops of Union and SPD, however, decided significantly higher premiums for electric cars . The federal government's funding for the existing “environmental bonus” is set to increase from 3,000 to 6,000 euros by the end of 2021 for electric vehicles with a net list price of up to 40,000 euros. There is also funding from the manufacturers.
The coalition also plans to invest an additional 2.5 billion euros in the expansion of the charging network for electric cars and to promote research and development, for example in battery cell production. For future investments by manufacturers and the supply industry, a “bonus program” of two billion euros is to be launched for 2020 and 2021. The automotive industry is undergoing a difficult transition to alternative drives, in addition to the digital change.
Corona stimulus package: relief for electricity customers
Citizens and businesses are to be relieved of the high electricity costs in the corona virus crisis . To this end, the EEG surcharge for the promotion of green power plants is to be reduced from 2021 through grants from the federal budget. The levy threatens to rise sharply against the background of the Corona crisis. It should now be 6.5 cents per kilowatt hour in 2021 and 6 cents in 2022 - currently the levy that citizens pay through the electricity bill is 6.76 cents. Without countermeasures, however, experts expect it to be significantly higher in the coming year.
Corona aid: Economic stimulus package provides billions in financial aid for rail and local transport
The German railway receives due to revenue shortfalls in the corona crisis billionaire grants. The federal government wants to provide the federally owned group with additional equity capital of five billion euros. Aid of 2.5 billion euros is also planned for local public transport.
Corona help for local authorities: trade tax slumped - this is how to compensate
The municipalities are at risk of high tax losses because trade tax in particular is the main source of income. Losses in trade tax revenue are now to be compensated for by the federal and state governments. The federal government wants to take over almost six billion euros.
Goal: The municipalities should remain able to act and continue to invest even in the Corona crisis - this is important for the construction industry and the skilled trades, for example. The federal government is not supposed to assume old debts, Finance Minister Olaf Scholz (SPD) failed with plans to do so due to the resistance of the Union.
Corona stimulus package: This aid is intended for employees and employers
As a result of the Corona crisis , spending in all social security funds is increasing. In order to prevent an increase in non-wage labor costs, the coalition is planning a “Social Guarantee 2021”. Social security contributions are to be stabilized at a maximum of 40 percent, through subsidies worth billions from the federal budget. This is designed to protect workers' net income and bring reliability to employers.
Merkel's stimulus package: Corona help for companies
Sectors and companies that are particularly stressed will receive additional support in the billions after the new stimulus package . “Bridging aids” are planned to a maximum of 25 billion euros. The aim is to prevent a wave of bankruptcies among small and medium-sized companies whose sales have collapsed. Bridging aid is to be granted for the months of June to August.
It should apply to sectors such as the hotel and catering trade, clubs and bars, travel agencies, showmen, but also professional sports clubs in the lower leagues. Fixed operating costs of up to EUR 150,000 for three months are to be reimbursed. A program to alleviate the corona impact in the cultural sector is also planned , in the amount of one billion euros.
Economic stimulus package in the corona crisis: planned tax relief
Tax relief for companies is also planned in the economic stimulus package . This extends the so-called tax loss carryforward. Companies can offset current crisis-related losses in the current year with profits from the previous year - this should strengthen liquidity. In order for companies to invest more, the coalition also wants to improve depreciation rules. In addition, corporate tax law should be modernized.
In addition, the GroKo economic stimulus package includes stronger investments in future technologies . To this end, a package for the future of over 50 billion is to be launched for the next few years. As a first measure, the tax research allowance is to be expanded. The funds for artificial intelligence are to be increased significantly. The expansion of the super-fast new 5G mobile communications standard is to be accelerated. Germany should also become a pioneer in the latest hydrogen technology.
Corona stimulus package: criticism of Merkel's 130 billion aid - "incredibly expensive" and "half-baked"
Update June 4, 7:24: The grand coalition has on Wednesday evening, after 21 hours of deliberation, a Corona-stimulus package presented by around 130 billion euros. Among other things, citizens and businesses are to be relieved of help for families, relief in electricity costs and a reduction in VAT in the Corona crisis . But there is criticism from the opposition.
Left-wing parliamentary group Dietmar Bartsch explained that "sensible decisions for municipalities and families" had been made on Thursday night. However, the package also includes "a lot of piecemeal and flashing straw". The program was "not very precise, not sustainable and incredibly expensive".
Bartsch described the temporary reduction in VAT as "economically absurd". At the same time, the package contains too little on the subjects of education and the future - but "a lot of lobbyism".
Corona stimulus package: Praise for decision against purchase premium for petrol and diesel cars
The left-wing group's climate expert, Lorenz Gösta Beutin, praised the coalition's decision against a purchase premium for petrol and diesel cars . However, the decisions would “not trigger a real ecological restart in Germany”.
Beutin criticized specifically that corona aid for companies is not linked to binding climate regulations. The coalition "missed a great historical opportunity" for the climate rescue.
Corona stimulus package: Greenpeace criticizes - "All-inclusive money distributed with the watering can"
The environmental protection organization Greenpeace also ruled that the corona stimulus package was "at best pale green". Some sensible investments in climate protection would be "superimposed by many measures that distribute money across the board with the watering can, for example through reduced VAT," said Greenpeace climate expert Tobias Austrup.
The government missed in the Corona crisis "a historic opportunity for an ecological awakening," said Austrup. He asked the members of the Bundestag to improve the package in this regard.
Corona stimulus package: GroKo decides 130 billion aid - Merkel: "right balance found"
Update June 3, 23:03: There is a special situation that has never been there, said Chancellor Angela Merkel to the Corona - Kunjunkturpaket . They tried to do "the best in a very, very difficult situation," said the Chancellor. In the negotiations, the GroKo was guided by the goal of doing the best for the future.
It is an "ambitious program, but none that gets out of hand," explains Merkel and continues: "I am convinced that we have found the right balance to survive the next few months."
With a view to the high number of short-term workers, Merkel makes it clear once again that one is in a very difficult situation and that it was now necessary to set impulses for the economy and society.
"It is important that the economy picks up now," explains Markus Söder. He means in 2020 and in the next six months, he clarifies. One has to “bring momentum back into the economy”. With regard to the package, he speaks of an “ignition spark” for the economy.
GroKo decides Corona stimulus package - Söder: "The heart is the VAT reduction"
Update, 22:50: Bavarian Prime Minister Markus Söder established after the GroKo consultancies of the press and explained the new Corona - stimulus package . This "does not lead to the country's debt" so that future generations could no longer breathe.
It is a "justifiable but massive package" with which one wants to push the upswing. The "centerpiece is the reduction in value added tax" , says Söder, with whom one wants to create an impulse to "strengthen demand". In addition, the families were promoted with the children's bonus. In addition, the municipalities that are particularly burdened have been considered.
Söder reports that it was negotiated for 21 hours. The decision had shown that Germany was "capable of acting". "If we managed to get out of the crisis better than many other countries, we would have done a good job," says Söder at the end.
SPD leader Norbert Walter-Borjans speaks of the general overlap between the parties. However, much had to be discussed in detail.
Finance minister Olaf Scholz emphasizes that this stimulus package will help Germany "come out of the corona crisis". The children's bonus in particular is an important “matter of justice”.
Corona crisis: GroKo decides to stimulate billions of euros - the overview
Update, 10:38 pm: In the Corona crisis, the grand coalition decided on a comprehensive package of measures . According to Chancellor Angela Merkel, this comprises a volume of around 130 billion euros for 2020 and 2021 , of which 120 billion euros will go to the federal government. The points at a glance:
- Municipalities that are hard hit financially receive billions in aid from the federal government, and losses in trade tax revenue are to be compensated for jointly by the federal government and the states.
- The child benefit is intended to be used to pay a one-off child bonus of EUR 300 per child.
- The VAT rate is to be reduced from 19 percent to 16 percent from July 1 to December 31, and from 7 percent to 5 percent for the reduced rate.
- Citizens and companies should be relieved of the electricity costs . To this end, the EEG surcharge for the promotion of green power plants is to be reduced from 2021 through grants from the federal budget.
- Industries particularly affected by the Corona crisis are receiving additional support in the billions. “Bridging aids” are planned to a maximum of 25 billion euros.
- The German track is also concerned with multibillion-dollar grants. The federal government is to provide additional equity capital of five billion euros. Aid of 2.5 billion euros is also planned for local public transport.
- A purchase premium for low-emission petrol and diesel cars was not included in the package. For this, significantly higher premiums for electric cars were decided.
Update, 12.10 p.m .: In order to get Germany through the corona crisis , the federal government has to provide aid in the billions. Discussions about an economic stimulus package are currently in full swing.
A calculation by the Institut der Deutschen Wirtschaft (IW), which published the picture , shows the current sums . Three months after the start of the corona pandemic, additional costs of EUR 192.9 billion had accrued for Germany .
Participants say on Wednesday afternoon that the core issues have not yet been resolved. These include incentives for cars from tax revenues, the acquisition of debts of municipalities as well as tax relief. A quick agreement is unlikely.
The Union and the SPD met separately on Wednesday morning before Chancellor Angela Merkel (CDU) continued the negotiations with the party and parliamentary leaders of the CDU, CSU and SPD as well as Vice Chancellor and Finance Minister Olaf Scholz (SPD). In view of the large differences, the talks in the Chancellery were interrupted on Tuesday shortly before midnight (see below). Participants did not rule out that the consultations could continue until late at night.
Wrestling for Corona billions not yet over: No GroKo participant wants to "give up" Trump
Update of June 3, 10:37 am: The discussions about the stimulus package in the Corona crisis have not yet ended. In view of large differences, the leaders of the CDU , CSU and SPD interrupted their negotiations in the Chancellery on Tuesday (June 2) shortly before midnight. The talks continue today (Wednesday, June 3) and should come to a result. But it could be late into the night again.
After the first round of negotiations on Wednesday morning, it is said that the talks have so far been very concentrated and intensive. There were factual disputes. Overall, the mood was good and very serious. Many points of the planned stimulus package have already been addressed. Final decisions should be made on Wednesday. Difficult topics such as the mobility package or help for the municipalities would also be discussed.
The round, led by Chancellor Angela Merkel * (CDU), wants to present a complete package at the end. The aim is to cushion the economic consequences of the corona crisis. Since the approximately 60 points that were initially on the table cannot be financed in total, each of the negotiating partners must be prepared to cut back.
"Tough" struggle for Corona billions: GroKo participants give insight - nobody wants to "give up" Trump
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 leader Markus Söder (CSU) reiterated in the world on Sunday its call for incentives to buy new cars. "We thus take old cars off the market and replace them with clean vehicles of the latest generation" According to his CSU colleagues and Transport Minister Andreas Scheuer to the premium 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 his case, I consider another one. 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, recently. 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 also counts, for example, 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.
In the United States, the risk of corona infection in the wake of the mass demonstrations against social grievances is being warned.
fn / AFP / dpa
* Merkur.de is part of the nationwide Ippen-Digital editors network.
Rubric list image: © dpa / John Macdougall
