When the corona pandemic broke out, it was a shock for large parts of the German economy. The state stepped in with billions in aid and stabilized the situation. When does the support end? Not at first, it is now said.
Stand builders, concert organizers and other companies suffering from severe corona can count on further government support.
The economics ministers of the federal states called on Friday to continue the funding that had been planned until the end of September until the end of the year. This appeal is addressed to the federal government, which pays the previous bridging aid III. Federal Minister of Economics Peter Altmaier made it clear after a meeting with his country ministerial colleagues that he is not averse to an extension. One will look at the situation and, if necessary, extend the help after the summer break.
The corona aid only applies to companies that can demonstrate a sharp drop in sales and can trace them back to the pandemic. As the economy is currently picking up again and more business is being done again, the number of companies eligible to apply is falling.
So far, a total of 105 billion euros have been transferred to companies as corona aid, said Altmaier. Half of these are loans and half are grants that do not have to be repaid. In addition, there is money from the federal states. According to Altmaier, the state support has paid off. “Together we managed to prevent a loss of substance in the German economy.”
Against the background of the lower number of infections and the lifting of restrictions, Altmaier said that the economy was “coming to a new start faster than many feared”. Growth is picking up – this year it will be 3.5 to 4 percent and in 2022 it will be more than 4 percent. The economy will have reached pre-crisis levels by spring 2022 at the latest. “That means we are hopefully out of the rough,” said the CDU politician. When the bridging aid, which ran until the end of June, was extended by three months as bridging aid III plus, he was in any case in favor of a continuation until the end of the year.
North Rhine-Westphalia’s Minister of Economic Affairs, Andreas Pinkwart, spoke out in favor of further supporting industries such as the trade fair industry. After all, they would “presumably not yet be able to work in the fourth quarter in the way that is normal at normal times”. In addition, the FDP politician considers the extension of federal aid to be a good precaution for possible rising incidences in the fall. Then you would “not have to put on a new program from the hip”, but would be prepared.
Saarland’s Minister of Economic Affairs, Anke Rehlinger, considers the prospect of the extension of the aid to be “a signal to secure the economy”. “We have to take care of the industries that are still suffering from the pandemic.” She stressed that the time should be used to prepare for any eventuality in autumn and winter. Should one be forced to make restrictions again because of the pandemic, there could be “other, smarter measures” that would take into account aspects such as a high vaccination rate.
Apart from the politicians’ meeting, Jörn Holtmeier, managing director of the trade fair association Auma, described the situation in his long-term planning industry as “catastrophic”. The first industry get-togethers would take place again in September, but the number of trade fairs until the end of the year was clear. There have been many rejections.
“If a stand builder finally gets another order for his first trade fair in November or December, but then does not receive any more money from the state in October, this can extremely worsen the already tense financial position of his company.” Then company bankruptcies are possible – “and that after holding out for so long and somehow keeping the company afloat thanks to state aid,” said Holtmeier.
It is mainly about stand builders, caterers and private trade fair organizers. Exhibition companies that belong to municipalities and the state are not entitled to federal corona aid. Holtmeier is also in favor of extending the aid until the end of the year. This was just a safety net, he said. “Some companies will get orders again beforehand and generate sales, they will then not have to use the help.”
According to Auma, Germany’s trade fair industry has around 231,000 employees. This not only includes organizers and stand builders, but also companies with a strong trade fair business – a hotel, for example, which does most of its business with trade fair visitors, is proportionately included in the number of employees. Since March 2020, according to the Ifo Institute, the crisis in the trade fair industry has led to economic damage of an estimated 40 billion euros: Dealers could no longer buy anything at the industry get-togethers, and there were no longer any visitors who would spend money on restaurant visits, hotel stays or taxi rides.
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