Home Business Economic aid will be extended Bridging aid III gets a “plus” Many...

Economic aid will be extended Bridging aid III gets a “plus” Many companies that have been closed for a long time due to Corona can reopen. But because the situation is still difficult in some industries, several aids will be extended until the end of September – including the short-time working rules.

1
0

A landlord in Frankfurt am Main measures the prescribed distances for tables and chairs. | dpa

Economic aid will be extended The Bridging aid III gets a “plus”

As of: 06/09/2021 1:56 p.m.

Many companies that have been closed for a long time due to Corona can reopen. But because the situation is still difficult in some industries, several aids will be extended until the end of September – including the short-time working rules. The simplified access rules for short-time work due to the corona pandemic will be extended by a further three months beyond the end of June. The economic crisis caused by the pandemic is “not over yet” and it is therefore important to continue protecting jobs, said Minister of Labor Hubertus Heil. The cabinet has therefore decided to extend the rules, as there are companies “that need short-time work beyond June 30”. The SPD politician referred, among other things, to the event industry. In the justification for the proposal for the cabinet, it is said that, in the view of the federal government, there are still “uncertainties” despite falling corona numbers and vaccination progress. It is about “stabilizing employment relationships and thereby avoiding unemployment and possibly bankruptcies as far as possible”. Above all, financially heavily burdened companies in the retail trade, in the entertainment, travel and tourism industries and in the hotel and restaurant industry, need easier access to short-time working beyond June 30, 2021.

Additional costs for BA of 2.6 billion euros

In addition to easier access to short-time working allowance, the full reimbursement of social security contributions for companies is to be extended. The federal government is making around 2.6 billion euros available for both instruments. Salvation announced the move in May and speaking of planning security for companies. Since the beginning of the year, the BA has already spent over 13 billion euros on short-time work. It is about “continuing to consistently secure employment” and building a “bridge to the time of economic recovery,” said Heil. Short-time working has already saved millions of jobs during the crisis and will continue to do so “where necessary”. The CSU in the Bundestag also pointed out that companies would be brought over the summer in this way. Criticism came from the Greens, who spoke of a “missed opportunity”. The extension “should have been combined with the introduction of a minimum short-time work allowance” in order to provide security and prevent going to the job center, explained the labor market expert Wolfgang Strengmann-Kuhn.

Bridging Aid III will also be extended

Further economic aid will also be paid longer. As the Ministry of Finance and Economics announced, Bridging Aid III for companies and self-employed people will be continued until September 30, 2021 – under the new name “Bridging Aid III Plus”. Economics Minister Peter Altmaier (CDU) said the “economic engine” was running. Nevertheless, the exit from the pandemic is gradual. That is why the extension of the aid, which was previously limited to the end of June, is an important signal. Finance Minister Olaf Scholz (SPD) emphasized that Germany had weathered the pandemic better than many others economically because the government had resolutely provided aid. “And this support is not stopped shortly before the goal, that would be economic nonsense.” The bridging aid is the government’s central crisis instrument to cushion the consequences of the pandemic on jobs and companies. With the extension, the upper limit for the subsidies will also be increased – especially larger companies from the fashion and hotel industries, for example, had complained that they had not yet received the aid. At the same time, companies that take employees out of short-time working earlier or hire new employees should receive a “restart bonus”.