Corona-crisis has cost Germany nearly 300 billion euros - what matters now

this is The result of a calculation by the Institute of German economy (IW) for the "picture on Sunday". Accordingly, the debt ratio increased to 79.9 percent

Corona-crisis has cost Germany nearly 300 billion euros - what matters now

this is The result of a calculation by the Institute of German economy (IW) for the "picture on Sunday". Accordingly, the debt ratio increased to 79.9 percent of the gross domestic product.

the IW Director Michael Hüther urged, it is now the end of the stimulus program must include a size of at least 100 billion euros. "It is important that a time limit is: The aid must not go beyond the autumn," said huether, the "BamS".

Federal government wants to make an additional 75 to 80 billion euros for the reconstruction program locker

He stressed that the Lockdown had been extraordinary, so that it could be the fact that only the extraordinary policy responses. "If we do nothing now, we can save perhaps money in the short term, but would slide over the long term in a huge unemployment. That would be much more expensive for the state.“

  • All the news about the Coronavirus, you will learn in the Live Ticker of FOCUS Online

Currently works, the Federal Ministry of Finance on a catalogue of measures for the stimulus package. The speech was the last of a significantly lower total: Only 75 to 80 billion euros, the government provides new aid, more according to "BamS", citing government circles.

billion package, especially for short-time work, children, money, and municipalities

The funds will flow according to the will of the Finance Minister, Olaf Scholz (SPD), also primarily in three areas:

  • The extension of short-time working allowance from 12 to 24 months. The increase in the short-time working allowance should not be extended from 60 up to 80 percent, however.
  • payment of a one-off child bonus in the amount of 300 Euro per child
  • A rescue package for the municipalities, which in addition to a debts control, that the Federal government and the Länder, the collapse in trade to replace the half of tax revenues.

The cost for the package of measures should wear "well over 60 billion" for the most part, the Federal government, the Rest should take over the country.

Scholz had originally planned to Double the number of new AIDS

The 100-billion-Euro limit, said the CSU Chairman Markus Söder to the upper limit, would in any case clearly below steps. In particular, the Bavarian Prime Minister was one of those who warned against too many new debts. Scholz even originally intended to have up to 150 billion Euro expected. dpa Finance Minister, Olaf Scholz

Anyway, opinions differ on the question of whether States in the ongoing low interest phase could not absorb much more debt than they do. Germany is in comparison to many other developed countries, certainly dazzling, even with the new debt as a result of the Corona-crisis.

  • More to read here: debt by Corona explodes: Top Economists argue, whether this is at all a bad thing
With sustainable investment in Germany can even benefit from the crisis

Not only IW-in-chief Hüther is therefore calling for more comprehensive assistance. Of a threatening Situation such as Italy is experiencing, whether Germany was still very, very far away, says Marcel Fratzscher from the German Institute for economic research (DIW). The state is investing his money in the right things, he could allow more spending without any problems - and even benefit. "If the state invested the money in education, Innovation and an efficient transport and digital infrastructure issues to generate this expenditure a lot of additional growth," says Fratzscher.

  • read also: pension, Hartz IV: What will change in June - and how you can find support

in other words: The better, boost the economy, according to the Corona-crisis in a sustainable manner, the more debt you can afford – because the money comes in a few years times again.

Schäuble calls for a focus also on the climate

sustainability plays but also in other respects an important role. So about President of the Bundestag Wolfgang Schäuble (CDU) has demanded to use the opportunity for a fundamental renewal of the economy. "We can't just say: We have to make everything back to how it was in front of Corona", said the CDU politician of the "Frankfurt General Sunday newspaper".

is Crucial, large sums of money to advertize, but to do the Right thing. "And because Everything that Germany, and Europe more dynamic, stronger, sustainable power, is right," said Schäuble. Therefore, he was in favour of the focus on climate, digitization, and Innovation.

"That the climate policy should now stand back, as some people think, you can't represent in earnest," said the President of the Parliament further. "Just buying bonuses for the automobile industry would answer with a bit of arg unimaginative." So far, the question of what the funds would be used is not answered, it is not convincing.

  • you can read more on the topic: "susceptible to blackmail": the economic way to reduce the importance of the auto industry

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Date Of Update: 02 June 2020, 00:26

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