Coronavirus – How the Federal Government is helping
The Federal Government is doing everything it can to help Germany overcome the huge social and economic challenges posed by the coronavirus. The most important thing now is to protect the health of our citizens, safeguard jobs and businesses and strengthen our healthcare system. For this reason, the Federal Government has introduced the largest aid package in the history of the Federal Republic. The total amount is around 750 billion euros. It consists of an economic stabilisation fund of 600 billion euros and a supplementary budget with which the Federal Government can borrow 156 billion euros. With this, the Federal Government can provide Germany and all the people in the country with a protective shield.
Aid for employees
No one should lose their job because of the corona pandemic. Therefore, the Federal Government is making it easier to access short-time work allowance retroactively from 1 March 2020. If ten percent of the employees in a company are affected by loss of working hours, the company can apply for short-time work allowance from the Federal Employment Agency. Temporary employment agencies can also do this. Anyone who is in short-time work will generally be compensated for 60 percent of the lost net remuneration. If at least one child lives in the household, the short-time work allowance is 67 percent of the lost net remuneration. Find out more from the Federal Ministry of Labour and Social Affairs.
Aid for small and large companies as well as for self-employed persons
The Federal Government has established an economic stabilisation fund to stabilise our national economy and secure jobs. Among other things, the Kreditanstalt für Wiederaufbau (KfW) can provide liability for up to 80 to 90% of the loan amount for new corporate loans upon application. The supplementary budget increases KfW’s guarantee framework from 465 billion to 822 billion euros. In addition, the Federal Government is providing 50 billion euros to support small businesses. This is largely intended to provide interim aid to self-employed persons, small traders and small entrepreneurs when their survival is under threat. Self-employed persons and companies with up to 5 employees (full-time equivalents) can apply for a one-off payment of up to €9,000 for 3 months. For up to 10 employees, it is up to €15,000 for 3 months. Find out more from the Federal Ministry of Finance.
Aid for tenants
Homes and business premises may not be terminated if the corona crisis causes delays in rent payments. The same applies to electricity, gas and telephone connections. Lessors may not terminate a tenancy on the basis of unpaid rent from the period from 1 April 2020 to 30 June 2020 if this is due to the impacts of the corona pandemic. Affected tenants have the option of subsequently paying the rent up to the end of June 2022. Find out more from the Federal Ministry of Justice and Consumer Protection (German language only).
Help for families
The Federal Government is adjusting the child allowance. Parents can get child allowance if their income is only enough for themselves but not for the whole family. During this time, we will temporarily only check the last monthly income for new applications for the child allowance instead of income for the past six months as usual. Find out more from the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (German language only).
Aid for our healthcare system
55 billion euros are available to react flexibly and quickly to the further development of the corona pandemic and its consequences, which can be used for further projects to immediately combat the pandemic. Hospitals and doctors in private practice will be compensated for lost revenue, for example, from postponed operations or treatments. An additional 3 billion euros are available for protective equipment, such as masks or protective suits. Find out more from the Federal Ministry of Health.
Freitag, 03. April 2020