The coronavirus pandemic has become a difficult test for the German economy, families and low-income residents of the country. The Grand Coalition has adopted a new package of measures to support companies and citizens affected by the pandemic.
The grand coalition will support the country’s residents in times of crisis by paying financial assistance to the poor, families, and also providing tax breaks to companies. Last year, families received € 300 per child. This year the bonus will be € 150. With this measure, the government plans not only to support families, but also to revive consumer demand. According to experts, last year the payment of the child allowance proved to be more effective in helping to revive the German economy than tax cuts.
The good news is that adults receiving the Hartz 1V allowance will also receive a lump sum of 150 euros.
For self-employed, low-paid employees, and anyone in dire financial straits, easier access to social security benefits will be extended until the end of 2021. Easier access means that there is only limited verification of the applicant’s property when applying for benefits. At the same time, it is easier to approve preliminary payments.
In order to support gastronomy, a reduced VAT rate of 7 percent will be applied to dishes in cafes and restaurants by the end of 2022. Previously, this settlement was limited to June this year.
Those employed in the field of culture will also receive assistance. The Grand Coalition decided to launch an additional support program for Neustart Kultur, worth 1 billion euros.
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