In Germany, amid the economic crisis unfolding due to the coronavirus, it is planned to allocate € 600 billion for loans for large businesses and € 156 billion to help citizens and small businesses.
At a meeting on March 25, the German Bundestag adopted a package of anti-crisis measures in the amount of more than € 750 billion to support citizens and enterprises in the context of the coronavirus pandemic, Nimetska Khvilya reported.
TOmajor enterprises plan to issue total loans €600 billion
To help citizens and small businesses, € 156 billion is envisaged, € 50 billion of them for small businesses and self-employed citizens.
The Deutsche Welle called the adopted package unprecedented. For the first time, Germany will abandon the mechanism known as the “black zero”, in which the planned expenses are financed not from new loans, but exclusively through budget revenues.
The Bundestag press service said that at the opening of the meeting, Parliament Speaker Wolfgang Schäuble called on MPs comply with quarantine and keep their distance from each other: between them were two empty chairs.
Also staff The Bundestag carried out disinfection in the hall during breaks.
Disinfection during operation of the Bundestag. Photo: EPA
Germany plans to borrow the money necessary to help the business by placing government bonds on the stock market, Deutsche Welle said.
The television and radio company noted that if during the financial crisis of 2008 Germany was the first to save banks, this time a large package of assistance will be sent to small businesses. Due to quarantine in the country, many enterprises operating in the service sector have closed: shops, hotels, restaurants, beauty salons, travel and concert agencies.
According to the government’s plans, all enterprises with no more than five employees will be paid up to €9 thousand. Enterprises with no more than 10 employees will receive up to €15 thousand. Money, first of all, should be used to pay rent of premises, leased equipment and repay loans. Assistance will be allocated in the form of subsidies, but they will be taken into account when calculating taxes for 2020.
To get help, firms and entrepreneurs will need to prove that they did not experience economic difficulties before the coronavirus epidemic. The government expects that up to 3 million representatives of small businesses will benefit from this type of assistance.
The Bundesrat, consisting of members of land governments, is expected to approve anti-crisis package March 27th.
An outbreak of coronavirus infection began in December 2019 in China. March 11, the World Health Organization announced the spread of coronavirus pandemic. According to the American Johns Hopkins University, on March 26, the total number of infected people in the world exceeded 480 thousand, of which 22 030 people died, more than 115 thousand recovered.
According to CNN, a third of the world’s population is quarantined due to coronavirus, about 2.5 billion people.
Moodyʼs Analytics believes that the coronavirus epidemic could become a black swan for the global economy and cause more damage than the financial crisis of 2008-2009.