Economy & Politics

Financial aid in the corona crisis – effect on the economy in 2021

Head of the economic department, Andreas Schröder, speaks in the video about the different Corona aid packages, explains why the support is sometimes criticized and looks to the coming year.

Stuttgart – In the corona pandemic, the federal government supported the German economy with emergency aid and loan programs worth billions. According to Minister of Economics Peter Altmaier (CDU), aid amounting to 71 billion euros has been given to companies since the beginning of the pandemic, plus a double-digit billion amount in short-time work benefits.

Overview of the Corona aid in the video

Head of the economic department, Andreas Schröder, speaks in front of the camera about the different Corona aid packages, explains how the financing of the aid payments works and why the economic support is sometimes criticized.

There are fears that government support will come too late for many companies. The November aid for the industries affected by the Corona shutdown would be paid out too slowly, criticized the Federal Association of Medium-Sized Enterprises, for example. Some experts also see an inequality in the distribution of aid packages. Large corporations like Lufthansa would be supported with billions, while the self-employed would have problems applying for compensation for their loss of earnings.

Unclear effects on the 2021 financial year

It is still unclear how the corona pandemic and the associated government aid will affect the 2021 financial year. Some experts fear that a wave of bankruptcies could threaten in the coming year, as the real economic consequences of the crisis would only become clear in 2021.

Current reports, background information worth knowing and useful tips – in our dossier we bundle all articles on Corona.


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