The Corona aid fund for larger companies was actually limited until the end of the year. The Bundestag now wants to extend the aid. Criticism comes from the left.
The Bundestag has approved an extension of the multi-billion Corona aid fund for larger companies.
The Economic Stabilization Fund (WSF) was previously limited to the end of 2021 and will now run until June 30, 2022. The traffic light groups SPD, Greens and FDP as well as the Union voted for it on Thursday. AfD and left abstained. The Federal Council still has to agree.
The fund, which was set up shortly after the outbreak of the pandemic in spring 2020, is intended to stabilize companies that run into liquidity bottlenecks and whose continued existence jeopardy would have “significant effects” on the economy and the labor market. Lufthansa received billions in aid. 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.
Extension “with a sense of proportion”
The FDP economic politician Reinhard Houben said the economy had not yet fully stabilized, so the fund was still needed. It will now be extended with a sense of proportion.
Specifically, the volume of possible aid is being reduced. So 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 an upper limit of a total of 100 billion euros. This sum drops to 50 billion euros. According to the federal government, funds amounting to around EUR 8.8 billion have been spent on recapitalization so far. At the same time, Houben said that the limited period of extension made it clear that help would not run until “Saint Never Day”.
Left MP Gesine Lötzsch said that the WSF lacked clear social regulations. Lufthansa was saved with taxpayers’ money, but the management then laid off thousands of employees: “It’s time for more solidarity.” The CSU MP Sebastian Brehm criticized that applications could only be made until April 30th. That is a technical mistake of the traffic light.
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.
