Sunday, December 26th, 2021
“Devastating mood”
Business associations are calling for improved corona aid
Many companies are also suffering from the corona pandemic – therefore business associations are calling on the federal government to sharpen the corona aid. The payments in November and December of the previous year are given as a guide. In addition, the 30 percent rule must fall.
In view of the ongoing stresses caused by the corona pandemic, various business associations are calling for government aid to be readjusted. “The mood in our industry is devastating, the companies have zero planning security,” said the general manager of the hotel and restaurant association (DEHOGA), Ingrid Hartges, the “Handelsblatt”. “All companies – regardless of their size – must now get the support that will hopefully ensure their survival during the last few meters of the pandemic.”
The federal government’s corona aid is intended for companies that have suffered high losses in the corona pandemic. If a company can demonstrate a decrease in turnover of at least 30 percent compared to the reference period 2019, the federal government pays a subsidy. The current bridging aid IV ends in March 2022. According to the Ministry of Economic Affairs, the maximum funding rate for the eligible fixed costs is 90 percent with a decline in sales of more than 70 percent.
Funding does not start with a 30 percent loss of sales
Crafts President Hans Peter Wollseifer welcomed this in principle – “but we would prefer it if the aid was again based on the November and December aid,” he told the “Handelsblatt”. The aid does not compensate for the actual costs incurred in the companies. The November and December aid granted in the previous year was based on the turnover of the respective month of the previous year.
The German Trade Association (HDE) is also calling for readjustment. What is needed are appropriate economic aid, “which corresponds to the reality of life in retail,” said managing director Stefan Genth to the “Handelsblatt”. This includes that funding should not start with at least 30 percent loss of sales.