Germany: Government financial aid does not reach companies in need

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Financial aid from the federal government, allocated to support small and medium-sized businesses affected by the coronavirus pandemic, has so far only rarely reached businesses in need.

So far, only one percent of the budget has been paid out to companies, for which 24.6 billion euros have been allocated. This is the federal government’s response to a request from the Green Party’s parliamentary group, Augsburger Allgemeine reports. It follows from this that by August the federal states had paid companies only 248 million euros.

Claudia Müller, an expert on the development of small and medium-sized businesses, pointed out the shortcomings of the developed company support program: “The previously allocated funds are intended only for companies that were seriously affected in April and May. In fact, the crisis hit companies at different times. ” Financial losses, reduction in turnover often came months later. According to the expert, the turnover of many companies fell by slightly less than 60 percent – the border required to pay aid. However, they are also under threat of closure.

The leader of the parliamentary group of “greens” Katrin Goering-Eckardt accused the Federal Minister of Economics Peter Altmeier in failure – the aid package is absolutely unnecessary due to too bureaucratic and unrealistic requirements for applications. “The financial position of many companies is getting worse every day,” she warns.

Urgent action is required: “It is necessary to reduce the border of losses incurred by companies, and also to allow the use of money to pay wages for entrepreneurs, for self-employed persons and for freelance workers in the field of culture.”

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