According to sources from Reuters (Berlin), Germany should proceed with an aid package of around 22 billion euros euros, between January and June 2021, aimed at companies and self-employed workers. The news carried by Investing.Com cites people close to the subject as sources, in accordance with the impacts that the Covid-19 pandemic will sustain in the coming year.
In parallel, Germany's aid package, to compensate companies affected by lockdown will reach 14 billion euros this month, the same sources revealed, stating that initially, the German government hoped to disburse 10 billion euros.
The German government's economic advisers hope that the economy shrinking less than they initially feared this year, thanks to a strong summer, but a second wave of the Covid-19 pandemic is obscuring growth prospects for 2021.
As part of the new aid measures, companies can receive up to 200,000 euros per month to cover fixed costs, such as renting, and individual entrepreneurs can use up to 5,000 euros.
It should also be noted that according to Investing.Com, 'Germany has sufficient fiscal firepower to adopt more rescue and stimulus measures, if it is necessary to combat the impact of the pandemic on Europe's largest economy,' said the Minister of Finance, Olaf Scholz, last Thursday.
Germany plans to lend more than 300 billion euros in total this year and next, but needs to carefully consider which aid measure makes sense, said Olaf Scholz.
Author: Holger Hansen / Investing.Com