In the Corona economic downturn in 2020, politicians initiated aid in record amounts. One of the most important instruments was the aid fund for larger companies. Now the support should be possible longer than originally planned.
In view of the fourth wave of pandemics, the traffic light groups are about to extend the multi-billion Corona aid fund for larger companies.
The SPD, Greens and FDP in the Bundestag are planning to expand the Economic Stabilization Fund (WSF) by six months until the end of June 2022, according to a draft law that has been submitted to the German Press Agency. At the same time, the scope – which has not yet been exhausted – is to be reduced.
The fund is an important instrument of the federal government to directly help large companies that are in need because of the Corona crisis. Lufthansa received billions in aid.
“With this qualified extension we are giving companies and the market a clear signal that functioning stabilizers will be extended and at the same time adapted to requirements,” said FDP budget expert Otto Fricke of the dpa.
The WSF consists of three instruments, which so far have a total volume of 600 billion euros:
– A guarantee of 400 billion euros should help companies to get money from banks and on the capital market. This instrument has not yet been used and is now expected to drop to a maximum of 100 billion euros.
– Recapitalization measures, which can go as far as the direct entry of the state into a company and for which the WSF is allowed to take out loans, have so far had an upper limit of a total of 100 billion euros. This sum is expected to drop to 50 billion. According to the Ministry of Economic Affairs, a good 8.8 billion euros have been used so far.
– There should be no change in the financing of special corona programs of the state development bank KfW, for which the WSF is allowed to take out 100 billion euros in loans. So far, 35.4 billion euros have been used here.
According to the bill, stabilization measures are possible until June 30th, while requests can be made until April 30th. Should the WSF expire, that does not mean that all aids have to be canceled. It is conceivable that the federal government will hold a stake in a company for several years through silent contributions.
The changes should be launched punctually before the turn of the year: According to FDP politician Fricke, the first reading in the Bundestag is planned for Thursday. The three traffic light groups also want to elect SPD top candidate Olaf Scholz as Chancellor in the coming week.
In addition to the WSF, there is other aid to help the economy in the pandemic. Regulations on bridging aid and short-time work have also been extended. The Ministry of Economic Affairs announced in November that around 126 billion euros in aid for the economy had been granted since the beginning of the crisis. This does not include the short-time work allowance.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
