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Still discussions: the Federal government could replace the company’s three-quarters of Sales losses

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Federal could replace companies, three-quarters of Sales losses

German Chancellor Angela Merkel (CDU) and Olaf Scholz (SPD), Federal Minister of Finance, come to the meeting of the Federal Cabinet, Federal Chancellery. Photo: Kay Nietfeld/Reuters Pool/Reuters

© dpa-infocom GmbH

Small businesses, pubs and Restaurants should have to close again, will probably survive not all. The economic and Finance Ministers want to make more money loose.

Companies that are particularly affected by the new Corona-rules, could get large parts of their Revenue from the Federal government replaced.

The proposed Finance Minister, Olaf Scholz (SPD) on Wednesday at a meeting in the Chancellery, told the “Bild”newspaper. The German press Agency confirmed the plans of Scholz and economy Minister Peter Altmaier (CDU) from government circles. It will, however, advise it. The costs Scholz numbered accordingly, at seven to ten billion euros for four weeks.

Specifically, small businesses could receive up to 75 percent of their Sales losses reimbursed, larger farms account for up to 70 percent. For comparison, sales for the previous month, so first of November 2019 are. According to the “trade sheet” should be granted to payments, such as Bridging loans or short-time work money from the emergency funding will be deducted. It will go mainly to companies in the hospitality or in tourism.

The money could come from the existing pot for Bridging loans. Of the 25 billion euros so far only around two billion euros have been retrieved. The Federal government is planning to Bridging loans, grants for small and medium-sized companies, to extend until the middle of 2021. Originally, they should be phased out by the end of the year. In addition to improvements in the conditions for aid for the heavily loaded culture – and Event industry.

Altmaier said Wednesday in the Bundestag, in the case of new and massive restrictions on additional aid would be necessary, which should be fast and non-bureaucratic flow. The policy had already been decided billions in aid programmes, in order to protect companies and Jobs. The Federal government has taken immense new debt. The Shutdown in the spring, had led to the shutdown of the public and economic life, in the second quarter, a slump in the economic performance.

Business associations had insistently warned of a renewed Shutdown. It is feared a wave of insolvencies in the hospitality industry. Many companies have corona due to now only little bit of money on the high edge. Above all, the hospitality industry has warned of a wave of insolvencies, if dining establishments have to temporarily close.

Altmaier had also freelancers and self-employed already hoping for a “entrepreneurial wage”. Business associations do not criticise for a long time, the previous AIDS were fit. A lot of Solo-self-employed worked from home. You use the date in the interim assistance reimbursement, provided for a fixed operating costs much. The actual costs were cost of living, or the rent of the apartment, because many worked from home. The reason the backup was not a solution.

Matthew Velter
Matthew Velterhttps://etrendystock.com/
With 5 years of experience as an editor, Matthew has been a crucial part of eTrendy Stock since its inception. He looks after the editing of news content published on eTrendy Stock. Apart from investing his time in editing, he also provides well-researched news articles for the U.S. niche. Mathew studied at University of central Florida.

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