In connection with the pandemic COVID-19 in Germany adopted anti-crisis program. The affected micro-enterprises and self-employed will pay 9 to 15 thousand euros and compensation in 67% with incomplete working time.
The rapid spread of the coronavirus pandemic threatened the possibility of health to rescue and treat people. So many States have had to impose strict quarantine measures. They have virtually paralyzed the business life of entire countries and led to the recession. For this reason, now the authorities around the world need to save and heal the economy.
Recipes in many countries is similar, although each has its own features. The specificity of the German concept of the business is largely associated, first, with the fact that in Germany the most important employers and in General the backbone of the economy are not large corporations, and medium, small and micro-enterprises. And secondly, the Federal structure of the state. Therefore in Germany to help businesses will be parallel to both the government and the Federal lands – each according to their abilities and priorities.
Additional budget for 2020: 156 billion euros
On 25 March, the Bundestag approved the largest in the history of Germany’s anti-crisis program agreed before the coalition government of conservatives and social Democrats. Among the measures to combat economic impact of the pandemic COVID-19 – a separate national program to support microenterprises and self-employed amount to 50 billion euros. The money will be taken from taken on the same day an additional state budget of 156 billion euros.
Thus, the budget for 2020 362 billion euros, which Germany has already spent the first three months will be increased by 43 percent. To do this, the FRG government had to abandon the policy of deficit-free budgets, of which two of the Cabinet under Chancellor Angela Merkel (Angela Merkel) adhere to seven years in a row.
Need money Germany will borrow, placing on the stock market of the state bonds. That those securities will be purchased by international investors rather favorable for Berlin conditions, no doubt. The level of interest rates in the world are now extremely low, and Germany is one of the best of the debtors.
In addition, the European Central Bank (ECB) in the current emergency situation guaranteed Eurozone bond buying to 750 billion euros and ready to print them. Violation of European rules of fiscal discipline, Germany was not threatened because Brussels has temporarily cancelled the European stability Pact, which limits the size of the budget deficit and public debt.
Assistance to microenterprises, self-employed and entrepreneurs
If, during the global financial crisis of 2008 to save had, in the first place, the big banks, because otherwise the whole currency system was threatened with collapse, it is now in particular danger were a small business and all those who in Russia is called the self-employed and individual entrepreneurs (SP). Because of the rigid quarantine in Germany, had to quit work countless services: small shops and hotels, restaurants and eateries, hairdressers and beauty salons, tour and concert agencies, etc.
Besides, without earning almost simultaneously was, for example, brokers, and tutoring, as well as representatives of many creative professions – regulars living on the royalties from musicians to photographers and artists. Even if they have some savings – loss of the income for many weeks if necessary, to bear the current costs of all these entrepreneurs is economically just not to worry.
So help them has now become one of the priorities of the state. All businesses employing 5 and more would be a one-paid for the next three months to 9 thousand euros. Firms with less than 10 employees, you can count on the sum to 15 thousand. The money is intended, primarily, to pay the rent of the premises, the leased equipment and loans.
Condition: all companies and individual entrepreneurs have to prove that before the pandemic coronavirus have not experienced economic difficulties and faced problems only after March 11. After all, the government certainly doesn’t want the expense of taxpayers to artificially extend the life of uncompetitive firms. Money are being donated, it’s not loans, and grants, however they will be included in the calculation of taxes for the year 2020. The government expects that this type of assistance will use up to 3 million small businesses.
Compensation in case of involuntary part-time work time
Another priority anti-crisis program – to keep as many jobs in firms of any size in terms of their temporary downtime. After all, what to do with the production company, which due to the pandemic coronavirus suddenly dropped orders? To continue to pay workers full salary it cannot, to dismiss staff does not want to lose skilled personnel, the lack of which will be felt in Germany, I think, even in the midst of crisis. This dilemma is particularly acute, for example, many very typical for the German economy highly specialized medium and small engineering companies.
They will help tool that proved its effectiveness in 2009, during the recession following the financial crisis. The payment of compensation to employees who are forced to work part-time work. In mid-March the German Bundestag promptly amended the relevant law, expanding its application. Enterprise by connecting to this program, pays the employees, while there is work. And in the downtime they get 60 percent of their net earnings from the state. Those who have at least one child, it is believed 67 per cent. According to forecasts of the government in such a regime can move on soon more than 2 million workers – approximately two times more than in the recession of 2009.
Subsidies and tax breaks in the Federal States
Anyone who is temporarily left without work or with lower wages, is designed to help such a national measure as forbidding landlords to break leases with tenants who are not able to regularly pay the rent. While this measure will be valid from April to end of September, but it may be extended. It is caused by specificity of the German real estate market: about half of German households live in their own apartments and houses and removable. Many self-employed and small business owners, this step by the government will greatly facilitate the life they now don’t have to worry about keeping a roof over your head and can focus on saving business.
As for regional measures to support small and medium enterprises, for example, the largest number of inhabitants in the Federal state of North Rhine – Westphalia, in addition to the program of the government of Germany decided to pay up to 25 thousand euros to firms with number of employees up to 50 people. Condition: the reduction in revenue by at least 50 percent or to temporary closure due to quarantine authorities.
In turn, the state of Baden-württemberg ready disposable pay to companies of this size to 30 thousand euros. In Bavaria a similar amount can request firms with number of employees up to 250 people. And the land Brandenburg has decided to provide companies with staff up to 100 employees, even 60 thousand euros. Moreover, in all the lands of the small and medium business are various temporary tax breaks.