300 euros per child and a reduction in VAT: new measures to exit the crisis

300 евро на ребенка и снижение НДС: новые меры для выхода из кризиса

The German government introduced a new anti-crisis programme with a volume of 130 billion euros. What are the main German recipes stimulation attenuated coronavirus economy?

Whether in the midst of crisis, the people handing out the money? In Germany, a coalition government consisting of conservatives and social Democrats, decided necessary. In any case, families with children. So now every child in the country will pay 300 euros. The government will spend 4.3 billion euros.

From an organizational point of view is a very simple measure. The extra money is automatically transferred to all recipients of child benefit. It is paid to one parent for everyone living in Germany of the child (to have citizenship is not required), and as long as he didn’t graduate, in other words – and after reaching adulthood.

The anti-crisis program in 2020-2021 years

A one-time payment of 300 Euro will be one of the most tangible and the most expensive of the measures envisaged new anti-crisis program of the government of Germany in 2020-2021 years for a volume of 130 billion euros. The program was presented in Berlin, the leaders of the government and participating in the coalition parties the evening of June 3 after a long preparation and two days of intense negotiations.

If the previous anti-crisis programme adopted in late March, in the situation of increasing pandemic of coronavirus, was intended to help business, especially small, just to hold during quarantine, but now the goal is different: to ensure a quick exit of economy from crisis, giving it a powerful impulse, and guide its development in the desired direction, supporting innovative, eco-friendly, promising technologies.

Respectively, and means to achieve goals are different. The momentum of the German economy should give, first of all, the stimulation of consumer demand. Hence the distribution of money to those who have children. Hence, the most costly measure that must feel each inhabitant of the country.

Hurry up to buy! VAT will be reduced by six months

For six months, from 1 July to 31 December 2020, in Germany reduced the value added tax (VAT). The regular rate will be 16% instead of the normal 19%, reduced – 5% instead of 7%. In this case the government refuses to tax revenues about 20 billion euros.

In other words, leave the money in the pockets of consumers and business accounts. After all, VAT is the tax that is charged on almost every product and service. Its decrease should lead to reduction in all kinds of retail and wholesale prices, and the government urged German business accordingly to change their price tags.

However, households with the purchase of food and everyday goods are unlikely to feel significant changes. Quite another matter – durable goods: clothing and footwear, including, by the way, children; consumer electronics, kitchen appliances, furniture and, of course, cars. Here the VAT reduction can provide consumers real savings.

Discount on electric car is now 9 000 euros

Limited half the measure of the German government then calculated that the people of Germany will want to take advantage of this temporary window to profitably acquire goods, the purchase of which they are still postponed. And thus in a short time will provide tangible support to domestic producers (or importers) and retail trade.

By the way, about cars. During the preparation of the anti-crisis program in Germany, a heated debate broke out about whether aiming to help in such a critical sector of the German economy, as the automotive industry, following the example of France? Heard serious objections: is the government will send taxpayers ‘ money to support obsolete technology – vehicles with internal combustion engines? Perhaps it is also a polluting diesel engines will subsidize?

The government has found an elegant solution which, by and large, can suit all. Targeted support will be provided only buyers of innovative technological solutions for electric and hybrid cars. The government doubled its share in the current program of stimulation of sales.

So now, for example, the buyer of the car on electricity at a price of 40 000 euros until the end of 2021 relies total discount of 9 000 euros 6 000 instead of 3 000 from the state, plus 3 000 from the manufacturer. At the same time, the reduction of VAT from 19% to 16% will make more affordable cars with petrol and diesel engines, buyers can save from several hundred to several thousand euros depending on the price of the car.

Electricity prices will be reduced

The anti-crisis program also provides for the allocation of an additional 2.5 billion euros for the development of charging infrastructure for electric vehicles. And the price of electricity in 2021 and 2022 has not increased, but rather decreased, the government will assume part of those subsidies to renewable energy, which will fall next year on the shoulders of consumers.

These are some of the key measures of the new anti-crisis program of the government of Germany concerning households and individuals. the program is 57 points.

300 евро на ребенка и снижение НДС: новые меры для выхода из кризиса

300 евро на ребенка и снижение НДС: новые меры для выхода из кризиса

300 евро на ребенка и снижение НДС: новые меры для выхода из кризиса

300 евро на ребенка и снижение НДС: новые меры для выхода из кризиса

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