With the lockdown, the German government around Angela Merkel also announced new bridging aid.
Is this Corona aid enough to save the retail sector?
At the Corona summit in Berlin, new measures in the fight against the corona virus * were decided
Among other things, retail is affected
by the nationwide
lockdown
Olaf Scholz
therefore announced an expansion of the
Corona financial aid
for companies.
Update from December 13, 2020, 10:41 p.m.:
The Sunday
Corona summit
triggered
a shock
in one industry in particular - namely for all those who earn money with the now banned New Year's Eve fireworks.
"In case of doubt, the entire
branch of industry is
threatened with bankruptcy," said Thomas Schreiber, Chairman of the Board of the
Association of the Pyrotechnic Industry (VPI)
, on Sunday.
Meanwhile, the German environmental aid welcomed the measure.
"For the first time, the federal government is stopping the previous crazy custom of giving
explosives into the hands of drunk people at
the turn of the year
," said
DUH Federal
Managing
Director
Jürgen Resch on Sunday.
The use of pyrotechnics often leads to injuries that also have to be treated in hospitals.
Corona economic aid: Munich Ifo Institute describes lockdown as an investment
Update from December 13th, 2020, 4:33 p.m
.: The head of the Munich Ifo Institute, Clemens Fuest, also wants the
lockdown
to be understood as an investment.
"Despite all the hardships, the restrictions also make economic sense," he said.
The economic consequences over the turn of the year are less than usual. Without a hard
lockdown
during the Christmas season, “an even harder and longer shutdown would be necessary by mid-January at the latest, which would have significantly higher costs”, he points out.
The chairman of the economy, Lars Feld, assumes that due to the
lockdown,
growth in the coming year will be lower than expected.
Nevertheless, no more major restrictions are to be expected.
Corona lockdown: German trade welcomes bridging aid III - but: "we would have wished otherwise"
Updated on 13.12.2020, 15:53:
"We would have liked other and to the now planned restrictions have done without, but unfortunately the are
infection dynamics
of politics the pace," said Hans Peter Woll zeal, the president of the Central Association of German Trade.
He is reacting more positively to
Bridging Aid III
than the Association of German Retailers.
It is important not to let the affected companies down.
He therefore welcomes the announced help.
Corona aid: Federal Finance Minister Olaf Scholz (SPD) announces bridging aid III
First report from December 13th, 2020, 3:13 p.m.: Berlin
- In order to
finally
get the
coronavirus
under control in Germany, the federal government wanted a quick and swift decision and received it on
Sunday
in
Berlin
: A
lockdown
will now start on
Wednesday,
March
16 December
radically restrict public life in Germany.
It shuts down retail in particular - the only exceptions are for basic goods, such as groceries.
The federal government must take care of
these “correct and necessary measures”, as
Federal Finance Minister Olaf Scholz
(SPD) emphasizes in Berlin, and it feels responsible for doing so.
“That is why this
resolution
also means that we stand by everyone who needs help and support.” At the federal press conference on the new lockdown regulations, Scholz therefore announced new “extensive aid” to avert further damage to the population.
The lockdown measures come too late, argues Merkur editor Maximilian Kettenbach in a comment.
The virus does not go on vacation or celebrate a quiet Christmas.
The aim is to avert harm to the population.
With this decision we stand by those who need help.
Extensive help is available for this, so @OlafScholz.
# Bridging aid # Corona pic.twitter.com/auWXiwvz1f
- BMF (@BMF_Bund) December 13, 2020
Coronavirus in Germany: The new "Bridging Aid III" at a glance
To this end, "
Bridging
Aid
III
" should seamlessly build on the previous aids.
Affected companies can then expect payments on account, similar to the November and December aid.
There will then be
a
maximum of
500,000 euros in support per month
for
directly
and
indirectly
affected companies, said Scholz.
The economic bridging aid had been prepared for a long time and meant a total of just
over 11 billion euros in
support
for the state every month
.
"This is about livelihoods," the finance minister continued and promised to support German traders during this difficult time.
#Businesses, # self-employed & #freelancers who are affected by closings from December 16, will receive financial support.
But improved # bridging aid: subsidies for fixed costs, better conditions & higher monthly.
Grant up to max.
500,000 euros.
#Corona aids
- BMF (@BMF_Bund) December 13, 2020
Also at
tax relief
to all legally-permitted to be made possible.
This includes, for example,
depreciation options
for goods that cannot be sold.
Companies that are not directly affected by closings should also be supported with
grants,
for example for
fixed costs
.
Coronavirus in Germany: Is "Bridging Aid III" sufficient to save the retail sector?
Despite the newly decided aid, the German Retail
Association (HDE)
continues to
worry
about the existence of many retailers.
"The funds provided so far are far from being sufficient to prevent a
wave of bankruptcies
in the
city centers
," said the HDE, criticizing
the recent
resolutions
of Chancellor Angela Merkel (CDU)
and the state prime ministers
on Sunday,
according to
dpa
.
The HDE is demanding the same support for December that the catering, which has been closed since the beginning of November, has already received.
So far, however, it looks bad.
(vs)