Simplified applications planned: Altmaier wants to significantly increase Corona aid

Simplified applications planned
Altmaier wants to significantly increase Corona aid

The lockdown causes existential problems for many companies. But the high bureaucratic hurdles allow the planned state money to flow slowly. The federal government apparently wants to counteract this and lower-threshold applications
shape. At the same time, the maximum rates are to be increased.

In view of application and payment difficulties with corona aid for companies, Federal Minister of Economics Peter Altmaier is planning a significant simplification of the applications and a substantial increase in aid, according to a media report. The magazine "Der Spiegel" reported that only one criterion should apply to receiving bridging aid III. Because of the corona pandemic, you must have suffered a decrease in sales of at least 30 percent in the month eligible for application.

According to the report, the monthly aid sums are to be increased: Companies that are directly affected by closures should receive up to 1.5 million euros from the federal government, instead of the current maximum of 500,000 euros. All other businesses could receive up to a million, writes the "Spiegel". So far, this amount has been capped at 200,000 euros.

More help for large companies too

In addition, according to the report, Altmaier plans to include larger companies in the aid in the future: Instead of 500 million euros in annual sales, the upper limit should be 750 million euros in future. "This is a clear improvement to the top," said the "Spiegel" from the Federal Ministry of Economics.

On top of that, another requirement of the retail trade should be met: Altmaier plans to give companies the option of so-called partial value depreciation. If, for example, a fashion store cannot sell winter goods because it had to close, it should in future be able to write off 100 percent of the loss from the fixed costs of its operation.

SPD still wants to "readjust"

The SPD had so far resisted this and pointed out the possibility of fraud. The party's economic policy spokesman, Bernd Westphal, has now signaled approval. "We have enormous aid programs at the start, which are also having an effect," said Westphal to "Spiegel". In some sectors, such as retail, "readjustments" have to be made. The SPD politician was quoted as saying that "the non-food trade should have the opportunity to have unsalable seasonal goods reimbursed as a partial depreciation of fixed costs."

The redesigned bridging aid III is to run retrospectively from last November to June this year. Companies that meet the conditions for November and December aid will continue to be paid out. According to "Spiegel" Altmaier's initiative has not yet been coordinated with the Federal Ministry of Finance of the SPD politician Olaf Scholz.

In addition, the increase in aid payments and the higher ceilings for company size would have to be approved by the EU Commission. Corona aid for companies is criticized not only by the opposition, but also by various business associations as being too complicated and bureaucratic. This delays the payment.

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