“The situation is serious,” says Federal Finance Minister Olaf Scholz, “even if it doesn’t feel like that for everyone”. This not only applies to the corona infection numbers, which are constantly climbing to new highs, it also and especially applies to the industries affected by the November lockdown. These are above all the areas of gastronomy and hotel business, leisure, culture and sport. The federal government is now responding to this with an extensive aid package, limited in time to November.
Olaf Scholz: “Generous help in one month”
Federal Finance Minister Olaf Scholz spoke on Thursday in Berlin at the federal press conference of “massive economic and financial support” for the industries concerned. Unfortunately, their restrictions are “unavoidable”. He announced a “generous aid of up to ten billion euros in one month”, November. This would “cushion the economic consequences of the lockdown as well as possible”.
Specifically, solo self-employed persons and companies with up to 50 employees are to be reimbursed 75 percent of their sales that they had in November of the previous year 2019. For larger companies, the reimbursement will be “slightly lower”, said Scholz. In addition, the bridging aid would be extended and further developed. The minister mentions the KfW express loan as a further aid instrument, which enables quick and unbureaucratic liquidity of up to EUR 300,000.
No additional credit for help
In view of the lockdown, Scholz turned directly to the companies affected and self-employed: “We’ll help you get through it.” The “generous help” is “immediate and massive”, “quick and unbureaucratic”. There is a “substantial compensation for the loss of income”.
When asked whether the country could also afford this, the finance minister replied: The whole thing was “refinanced” by the budget decisions of the Bundestag, “no additional money” was needed, including no new loans. Finally, Scholz is asked how often Germany can afford such a lockdown. “We have all the financial strength that we need,” explains Scholz. “We have the strength to do what is required.”
Scholz: We have “an agreement with the citizens”
The finance minister rejects speculations about a third lockdown if the measures may not be successful in November. He expects the “effectiveness” of the decisions that have now been made. “Most citizens stick to the rules,” said Scholz. He emphasizes that the federal government has “an agreement with the citizens”, that “also applies to these measures”, which were decided on Wednesday by the Chancellor and the Prime Ministers.
“November is the month of truth,” says Scholz. Here it is decided to what extent the increase in the number of corona infections can be stopped. “It’s about reducing contacts.” Stabilization is not enough. “We have to get down with the numbers,” said the minister. “It is the contacts that lead to infections.” 75 percent of all infections are currently no longer traceable and contact tracking is no longer possible. Therefore it is “right and necessary” to break through the increase in the number of infections and to act now “resolutely and purposefully”.
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