The federal government has agreed on an aid package for companies suffering from the consequences of the Ukraine war. That’s what Lindner and Habeck are planning.
Companies in Germany suffering from the economic consequences of the Ukraine war receive state aid. Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) presented their plans for simplified loans and grants on Friday afternoon. “Doing nothing is not an option in this situation,” said Lindner.
The aid package is an “economic policy shock absorber,” said Lindner. According to the two ministers, these measures are intended to prevent structural breaks and at the same time ensure that taxpayers’ money is used responsibly.
Habeck also made it clear that not all hardship would be taken away. Companies would also have to bear a burden as a result of the war. You will not get through this time without losses, he said.
This is what the aid package looks like
Specifically, the package provides for various forms of support:
- 1. Companies that are particularly hard hit by high natural gas and electricity prices can apply for a “temporary and narrowly defined” subsidy obtain. Lindner announced a financial framework of 5 billion euros for this. In this case, companies whose energy costs have increased by more than 100 percent are considered to be affected.
- 2. Burdened companies should be simplified Loans from the KfW development bank be able to record. A volume of 7 billion euros is available for this. Habeck had already announced in March that he would work on such a solution.
- 3. Also planned is a funding program for companies threatened by high security payments, especially energy suppliers. The federal government wants to develop standardized criteria to grant companies short-term credit lines from KfW that are backed by a federal guarantee. A total credit volume of up to EUR 100 billion is planned for this purpose.
Corona aid as a role model
In March, the EU Commission cleared the way for companies to be granted state support more easily in order to protect them from the economic effects of the war against Ukraine.
Similar to the Corona crisis, the temporary legal framework that regulates the extent to which EU states can support companies has been adjusted. The energy industry in particular has been affected by the war in Ukraine due to rising prices and a shift away from Russian supplies.
A spokeswoman for Habeck said at the end of March that the federal government was working “at full speed” on an aid package for companies. Business associations had asked the federal government to provide targeted help.
Supplementary budget grows to 24 billion
The company grants of 5 billion euros will be part of the supplementary budget. This will have a volume of at least 24 billion euros, as Lindner confirmed at the press conference on economic aid.
Of this, 17 billion euros are planned for the second relief package because of the high energy prices. In addition to the company grants, two billion would then be added to the countries for taking in refugees from Ukraine. In addition, there would be humanitarian aid abroad, which cannot yet be quantified. Possibly also help for the Ukrainian army.
Lindner wants to bring the supplementary budget into the cabinet at the end of April. With the volume already mentioned, the federal government is heading towards record debt this year.