27 Dec 2021 7:24 am
In view of the ongoing pandemic-related burdens, various business associations are calling for government aid to be readjusted. Among other things, companies complain that the current grants do not compensate for the losses actually incurred.
In view of the ongoing restrictions imposed by the German government’s COVID-19 policy, numerous German business associations are dependent on financial aid from Corona. According to the stakeholders, however, these are often barely enough to cover the decline in sales. Business associations are calling for readjustment.
The mood in the hotel industry is devastating, companies have zero planning security, defendant Ingrid Hartges, the general manager of the hotel and restaurant association (Dehoga), opposite the Handelsblatt. She said:
“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 currently running bridging aid IV ends in March 2022. According to the Ministry of Economic Affairs, the maximum funding rate of the eligible fixed costs is 90 percent with a decline in sales of more than 70 percent.
Hans Peter Wollseifer, President of the Central Association of German Crafts, welcomed the aid in principle, but said: “We would like it best if the aid was based on the November and December aid again.” 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 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. This includes that funding should not start with at least a 30 percent loss of sales.
more on the subject – Delivery problems and the 2G rule: Retail is suffering from bad Christmas business
(rt / dpa)