By Holger Hansen
BERLIN, Nov 14 (Reuters) – Germany expects to pay out 22 billion euros ($26 billion) in COVID-19 aid assist from January by June 2021 to corporations and self-employed individuals, individuals near the matter mentioned, because the influence of the pandemic extends into subsequent 12 months.
Individually, Germany’s November coronavirus assist package deal to compensate corporations affected by lockdown measures will this month quantity to 14 billion euros, they mentioned. Initially, the federal government had anticipated to pay out 10 billion euros.
The German authorities’s council of financial advisers expects the economic system to shrink lower than initially feared this 12 months because of a robust summer time, however a second wave of the COVID-19 pandemic is clouding the expansion outlook for 2021.
As a part of the brand new spherical COVID-19 aid measure, corporations can stand up to 200,000 euros a month to cowl fastened prices resembling hire, whereas solo entrepreneurs can stand up to five,000 euros.
Germany has sufficient fiscal firepower to unleash extra rescue and stimulus measures if wanted to counter the influence of the pandemic on Europe’s largest economic system, Finance Minister Olaf Scholz had mentioned on Thursday.
Germany plans to borrow greater than 300 billion euros in whole this 12 months and subsequent, but it surely wants to contemplate rigorously which aid measures make sense, Scholz mentioned.
Brussels-based thinktank Bruegel places the entire quantity of outright, non-repayable help Germany has been in a position to provide corporations and residents at 8.3% of its financial output – not far wanting the 9.1% determine in the US.
($1 = 0.8452 euros) (Writing by Arno Schuetze Enhancing by David Holmes)