BioNTech Annual General Meeting Vaccine effective against mutants

Status: 06/22/2021 6:13 p.m.

BioNTech boss Sahin uses the vaccine manufacturer’s general meeting to spread good news: Production will be increased and the vaccine also protects against virus variants. In view of the growing spread of the delta variant of the coronavirus, which is considered to be more dangerous, many people are wondering how the effectiveness of the various vaccines is doing in this regard. At today’s Annual General Meeting, CEO Ugur Sahin gave the all-clear for BioNTech’s product: “There is currently no evidence that our vaccine needs to be adapted to the variants in circulation,” he said. That does not mean that the company is stopping development: According to Sahin, BioNTech is working on flexible processes in the areas of technology, production and approval.

Constant analysis

In order to be prepared and to be able to react quickly if a third dose should be required to boost existing vaccinations or to adapt to a new virus strain, BioNTech constantly analyzes the effectiveness of the vaccine against newly emerging variants, the CEO explained.

Sahin also commented on the subject of booster vaccinations: It is not yet known when and how often a booster will be necessary. But he assumes “that a third vaccination is of great value for boosting immunity,” said Sahin. Knowledge about the corona virus is steadily increasing. “We observe that immunity will decrease over time and new variants will emerge.”

Sahin against patent release

The one raised by US President Joe Biden and other politicians Request for the release of patents to enable license-free vaccine production in developing countries, the BioNTech boss rejected. It is important to be able to make the vaccine available worldwide “as quickly and as comprehensively as possible”. However, raw materials are currently the “limiting factor”, not patents.

BioNTech is working with partners to deliver the vaccine cheaply to developing countries. However, a patent release would not bring additional amounts of vaccine. The production of the vaccine is very complex and consists of around 50,000 work steps.

Production is increased

During the Annual General Meeting, Sahin also commented on production: The BioNTech boss confirmed that the company, together with its US partner Pfizer, is aiming for a production capacity of up to three billion vaccine doses this year.

In the coming year 2022 it should be more than three billion. BioNTech will manufacture at least half of this. To date, BioNTech and Pfizer have shipped more than 700 million doses of their Covid-19 vaccine to over 100 countries worldwide.

Dividend is possible

The shareholders should also benefit from the billions in sales generated with the corona vaccine. Chief Financial Officer Sierk Poetting said that in the next financial year it should be checked whether and in what amount a dividend is possible.

However, the strategic priority for 2021 is the reinvestment of the capital in order to further advance innovations in various therapeutic areas and technologies as well as our corporate development, said Poetting. The Mainz biotechnology company achieved a net profit of 1.1 billion euros on sales of 2.05 billion euros in the first quarter of this year .

New production facilities

There was also news from BioNTech outside of the Annual General Meeting. The European Medicines Agency’s Committee on Medicinal Products for Human Use gives the go-ahead for two more production facilities to manufacture the joint corona vaccine from Biontech and Pfizer.

One becomes accordingly in Reinbek, Schleswig-Holstein, operated by Allergopharma, the parent company of Dermapharm , the other in the Swiss stone from Novartis Pharma. The work can be started immediately, since no approval from the EU Commission is required

Heil is promoting training bonuses There should be no “Corona vintage”

Status: 06/22/2021 05:07

The second year of training since the beginning of the corona pandemic begins in September. The federal government supports training companies with training bonuses, but Labor Minister Heil is still worried about a corona kink on the apprenticeship market. Federal Labor Minister Hubertus Heil sees the German training market facing a critical phase after months of the pandemic. The number of apprenticeships like applicants had already decreased last year, said the minister. Figures from the Federal Institute for Vocational Education and Training prove this. The test comes this summer, “Heil told the Funke media group. “We are currently fighting the clock as the training year begins on September 1st.” It is clear: “We are not allowed to allow a Corona class in training.”

6000 euros bonus per apprenticeship position

Many companies were hesitant at the moment because they believed they could not afford apprentices at the moment. Heil called on companies to make greater use of state support offers such as the training bonus. The bonus has been approved for almost 40,000 training positions since last summer.

Heil pointed out that the new protective umbrella for training has been in place since the beginning of June. The premium was also doubled in March. Companies affected by a pandemic that keep their training quota have been receiving EUR 4,000 per apprenticeship position since the beginning of June, and EUR 6,000 for new trainee positions.

According to the Federal Ministry of Labor, the program has a total volume of 410 million euros for the current year. By mid-June, around 88 million euros, almost a fifth, had been paid out

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Tourism crisis Later restart the River cruises

Status: 19.06.2021 3:29 p.m.

River cruise ships are back in Bavaria – because of the infection protection with fewer guests on board. The long absence of the ships has left deep marks along the routes.

By Sebastian Grosser and Martin Gruber, BR

A melody sounds on deck of the river ship “NickoSpirit” before cruise director Ferdinand Selig starts his speech. “Welcome to Regensburg, dear passengers.” In front of Selig is a piece of paper with several names, which are in turn marked with different colors. “Please remember your grouping and don’t forget your mask when you leave the ship,” he says. At this point, several passengers have already gathered at the entrance of the ship to go ashore for a tour of the city. A maximum of 14 people are allowed in a group. This is part of infection protection.

Million revenues before Corona

The “NickoSpirit” is the first river cruise ship to be moored in Regensburg this year. Usually the season starts in spring. But Corona put the once booming tourism industry on the back burner in 2021. The Regensburger Stadtwerk, which manages the pier, is expecting around 100 landings this year. Similar to 2020, in the first Corona year, the city is expected to turn over only 100,000 euros with the ships. For comparison: in 2019, more than 1000 ships moored in Regensburg, with which the city was able to bring in a turnover of 1.3 million euros.

Hard times for tour guides

Michaela Ederer is already waiting for the guests at the Donaulände, where the “NickoSpirit” moored. The tour guide has longingly awaited the first ship and its passengers. “The last few months have been really tough,” she says. “The majority of the tour guides work as freelancers and rely on the tour guides and the sales they generate with them.”

In the peak of the pandemic, around 7500 tour guides nationwide were unemployed, says Ederer, who is also on the board of the Federal Association of Tour Guides in Germany. Many of her colleagues should have tapped their retirement reserves. “We are therefore very happy,” she says, referring to the arrival of the first passengers.

Passengers: No problem with infection protection

While the guests with audio guides in their ears follow the tour operator’s blue tablet to explore the historic old town of Regensburg, cruise director Selig talks to the passengers who have stayed on the ship. Unless they are sitting in the restaurant or on the summer deck, they all wear mouth and nose protection. Many of the mostly older passengers do not mind the infection control measures. “The guests are used to it,” says Selig. For the provider of cruise travel, however, creating a suitable hygiene concept was a bit of a challenge: In order to maintain the distance, only 143 of the otherwise 170 passengers are currently allowed on board. There is even a certified test center on the “NickoSpirit” so that everyone on the ship can be tested every 48 hours.

End of the cruise boom

While the provider Nicko had previously relied mainly on a German-speaking audience, other shipping companies, such as the largest industry association IG Rivercruise, have a harder time BR demand notifies. In particular, sales of shipping companies that specialize exclusively in guests from overseas such as the USA or Australia fell by 100 percent last year. But also those ships that were able to sail between July and October 2020 recorded losses of between 60 and 70 percent.

“The Queen would declare the year 2020 to be an ‘annus horribilis’. The IG Rivercruise joins this,” said the Industry association. The forecast for 2021 is no better. “The season is short,” said IG Rivercruise. Individual providers have therefore filed for bankruptcy, but had already got into financial difficulties before the pandemic.

Souvenir shops before the end

The lack of cruise business also brought Gabriele Winklmeier into existential difficulties. The 58-year-old has a souvenir shop in the old town of Passau. The ship tourists from the USA and France would actually be their main business. Due to the pandemic, hardly anything happened last year, according to Winklmeier. “This year, too, things have been bad so far: no buses, no ships, no customers. Now the first cruise ships are arriving, but they all dock outside.” She will probably give up her souvenir shop – after 17 years.

Winklmeier looks back with sadness: “Three years ago all hell was going on here. 300 guests as early as eight in the morning. You could still do business there. Today it can happen to me that I don’t have a turnover of 30 euros.” The guests of “NickoSpirit” will probably no longer buy souvenirs in Winklmeier’s shop. The cruise on the river ends in Passau. Several buses are waiting along the landing stage where the suitcases are already lined up. Cruise manager Selig, who has to say goodbye to his guests after nine days, draws a positive balance: “It was a relaxed trip, even if it seems unrelaxed. We were well prepared with the tests on board. Many guests were vaccinated or recovered. That is natural also a great relief for us. “

Corona crisis Further help for business in sight

Status: 06/18/2021 5:51 p.m.

The states are urging to continue Corona aid for companies until the end of the year – Federal Minister of Economics Altmaier indicated readiness. Support for domestic exporters has already been extended. There are signs of an extension of the corona aid for companies that have been particularly hard hit by the pandemic. The economics ministers of the federal states demanded that the funds previously planned until the end of September be continued until the end of the year. The federal government pays the previous “Bridging Aid III”.

Extension after the summer break if necessary

Federal Minister of Economics Peter Altmaier (CDU) made it clear after a meeting with his country ministerial colleagues that he is not averse to an extension. One will look at the situation and, if necessary, extend the help after the summer break. The corona aid only applies to companies that can demonstrate a sharp drop in sales and can trace them back to the pandemic. As the economy is currently picking up again and more business is being done again, the number of companies eligible to apply is falling.

Altmaier: So far, 105 billion euros have been transferred

So far, a total of 105 billion euros have been transferred to companies as corona aid, said Altmaier. Roughly half of these are loans and half are grants that do not have to be repaid. In addition, there is money from the federal states. According to Altmaier, the state support has paid off: “Together we managed to prevent a loss of substance in the German economy.”

Against the background of the lower number of infections and the lifting of restrictions, Altmaier said the economy was “coming to a new start faster than many feared”. Growth is picking up – this year it will be 3.5 to 4 percent and in 2022 it will be more than 4 percent. The economy will have reached pre-crisis levels by spring 2022 at the latest. “That means, we are hopefully out of the worst,” said the CDU politician. When the bridging aid, which ran until the end of June, was extended by three months as “bridging aid III plus”, he was in any case in favor of continuing it until the end of the year.

Aid to exporters continues

Meanwhile, the corona aid for domestic exporters has already been extended until the end of the year. They were decided in July 2020 and should actually end this month. “Even if the economic situation has improved significantly in the past few months, the corona pandemic continues to pose challenges for the export industry,” the Ministry of Economics justified the decision. “Some companies are only now feeling the stresses with a delay.”

“Security signal” to the economy

North Rhine-Westphalia’s Minister of Economic Affairs, Andreas Pinkwart, spoke out in favor of continuing to support sectors such as the trade fair industry. After all, they would “presumably not yet be able to work in the fourth quarter in the way they normally would at normal times”. In addition, the FDP politician considers the extension of the bridging aid to be a good precaution for possible rising incidences in autumn. Then you would “not have to put on a new program from the hip”, but would have already been prepared. Saarland’s Minister of Economic Affairs, Anke Rehlinger, considers the prospect of the extension of the aid to be “a protective signal” to the economy. “We have to take care of the industries that are still suffering from the pandemic.” She stressed that the time should be used to prepare for all eventualities in autumn and winter. Should one be forced to make restrictions again because of the pandemic, there could be “other, smarter measures” that would take into account aspects such as a high vaccination rate.

Situation in trade fair industry “catastrophic”

The corona pandemic hit large parts of the German economy hard. In the meantime, things are looking a little better again, also because restrictions have been relaxed and restaurants and cafes are open again, for example. However, the situation in some sectors such as the trade fair industry is still very tense.

Jörn Holtmeier, managing director of the trade fair association AUMA, described the situation in his branch as “catastrophic”. The first industry get-togethers would take place again in September, but the number of trade fairs until the end of the year was clear. There have been many rejections. “If a stand builder finally gets another order for his first trade fair in November or December, but then does not receive any more money from the state in October, this can extremely worsen the already tense financial situation of his company.” Then company bankruptcies are possible. It is mainly about stand builders, caterers and private trade fair organizers. Exhibition companies that belong to municipalities and the state are not entitled to federal corona aid.

Around 231,000 employees

Holtmeier is also in favor of extending the aid until the end of the year. This was just a safety net, he said. “Some companies will get orders again beforehand and make sales, they will not have to use the help.”

According to AUMA, Germany’s trade fair industry has around 231,000 employees. This not only includes organizers and stand builders, but also companies with a strong trade fair business – a hotel, for example, which does most of its business with trade fair visitors, is proportionately included in the number of employees. Since March 2020, according to the Ifo Institute, the crisis in the trade fair industry has led to economic damage of an estimated 40 billion euros: Dealers could no longer buy anything at the industry get-togethers, and there were no more visitors who would spend money on restaurant visits, hotel stays or taxi rides

Film industry “There’s never been more shooting going on”

Status: 06/18/2021 10:22 a.m.

The film industry is recovering from the forced Corona break. Due to the great pent-up demand, production is currently running at full speed. But the pandemic has consequences that will change the industry.

From Tina von Löhneysen, RBB

Backdrops on trolleys, trucks being unloaded, locked gates behind which secret stage sets are set up – in the Babelsberg studio there is a buzz. Christoph Fisser is a member of the board here and is in a good mood. In a polo shirt, he walks across the extensive grounds. “We are starting three major international productions these weeks, all of which are star-studded,” he says. You can hear the pride in his voice. “Not only here, it is shot everywhere like never before, because all films are being made up that were not made last year. They were all already financed.”

Make-up artists are hard to come by

The industry is booming. So much so that it is difficult to put crews together. Make-up artists and sound engineers are hard to come by because they are all already engaged in productions. Studio Babelsberg is a heavyweight in the industry. Founded more than a hundred years ago, films such as “The Blue Angel” or later “The Bourne Ultimatum” and “Grand Budapest Hotel” were shot here. It is considered the oldest film studio of its kind in the world. During Corona you only had to close for 16 weeks, two large-scale productions then continued filming in Potsdam. Although this was associated with a large logistical and financial effort – 60,000 tests were carried out for it, and now more meticulous testing is being carried out – but it has just continued.

The industry stood still

The industry as a whole was different. There was a standstill. It was hardly shot. The uncertainty was too great, the conditions too strict. Now there is far-reaching relaxation, the general sigh of relief and a lot of catching up to do, says Sebastian Lambeck from the producer alliance for film and television. But in perspective one will be able to observe a shift in production activity.

“Financing movies has become even more difficult due to the pandemic,” says Lambeck. Whether you get a film in the cinemas when it is finished, how well it is going: All this has become even more unpredictable due to the pandemic. And, quite clearly: The trend that was already emerging has accelerated enormously as a result of Corona: “The streaming providers are the winners of this crisis.” Babelsberg board member Fisser also notices this. The demand has more than tripled, which is due to the great hunger of streaming services for content. For Fisser’s company, that doesn’t really matter. When he shoots, it always makes money. But it hurts him a little. “We love cinema, you really have to say that. Personally, I much prefer to produce cinema films than serial, but the market has changed dramatically.”

“Films galore”

Despite all the changes: the good old cinema still exists. In these weeks, the movie theaters in Germany will open again, regionally staggered. “There are plenty of good films,” says Christian Bräuer, chairman of the AG Kino – Gilde eV

“In the next four months, about as many films will be shown in theaters as would normally be spread over an entire year,” he reports. Constantin Film AG, which is both a film distributor and a production company, confirms this. Like all distributors, they have an unusually large number of films on stockpile. That means for the cinema-goers: There is a huge selection of films. This is one of the reasons why the cinema operators are looking at the openings with great confidence. The hope: After the crisis there will be a boom – not only in film production, but also in watching films.

Aviation industry Corona isn’t the only problem

Status: 06/18/2021 6:46 a.m.

Aviation has been hit particularly hard by the Corona crisis. But the industry is also under pressure when it comes to climate protection. Will the change now succeed?

From Michael Immel, ARD aviation expert

The mood in the aviation industry has brightened. Because quite a few planes are filling up again, and many people are looking forward to their summer vacation. And so bookings are going through the roof almost everywhere these days: Lufthansa, Eurowings and Condor – all are experiencing a huge summer trend.

Will the first be the last?

The “National Aviation Conference”, which today is attended by top representatives from politics, business and trade unions at Berlin-Brandenburg Airport, wants to continue this positive trend. But it won’t be easy. Even if capacity utilization is now increasing sharply: over the year as a whole, the aviation industry will probably only end up at 40 to 50 percent of the pre-crisis level. Lufthansa boss Carsten Spohr had already stated last spring: “We were the first industry to be affected by this global crisis and aviation will be one of the last to leave it.”

Remove travel restrictions

In the joint declaration on the aviation conference to be signed in Berlin today, it is therefore stated: “After around 15 months of almost total standstill, the German air transport system is suffering from massive economic losses. Therefore, further decisions and measures are necessary to revive air traffic to support.”

It is primarily about travel restrictions that are to be lifted gradually. And to simplify travel, in particular through a digital vaccination certificate for proof of vaccination, recovery and test results. This should accelerate the processes at the airports.

Successful and sustainable

In the nine-page paper that tagesschau.de is available, the main focus is on a green strategy for the German aviation industry. The revival should be based entirely on sustainability. Climate protection, eco-efficiency and sustainable competitiveness: These are the future topics for the entire industry – which has also understood that lip service alone will not be enough in the future.

“An essential instrument for climate protection in air traffic is the rapid and continuous renewal of the aircraft fleets”, it says in the Berlin declaration. New commercial aircraft would emit up to 25 percent less CO2 than the previous generation. With the collapse of air traffic, however, the renewal of the fleet has largely come to a standstill. “That is why the federal government has initiated a funding program to provide an economic incentive for the fleet renewal. We are continuing to advocate for the rapid approval of the program under state aid law during this legislative period.”

Criticism from unions

Meanwhile, in the run-up to the aviation conference, there is massive criticism from unions. According to the ver.di survey, 16 percent of the workforce have left air transport since the beginning of the pandemic. “The numbers of downsizing are frightening,” said Mira Neumaier, ver.di federal specialist group leader for aviation, who is also taking part in the aviation conference today.

“In view of the extremely thin workforce even before the start of the pandemic and the great stress situation for the employees, it is to be feared that a regulated restart in air traffic – even at 50 percent of the pre-crisis level – will no longer be affordable.”

Securing jobs

“It is not enough to save corporations,” warns Stefan Herth, president of the cockpit pilots’ union. “The short-time work allowance was an important measure in the acute crisis. What we now need is the sustainable safeguarding of jobs. In the past year and a half, politics has shown too little commitment here,” said Herth.

As a major shareholder, the federal government also has the responsibility not to lose sight of the well-being of employees when making important business decisions. “Wage dumping and social cuts at state expense must not be accepted anywhere.”

Cruises start again The return of the dream ships

As of: 06/17/2021 3:52 p.m.

The cruise industry is trying to start over in small steps. Successful vaccinations and falling infection numbers are fueling hopes, but the way out of the crisis should not be an easy one.

By Thomas Spinnler, tagesschau.de

The cruise industry, along with the entire tourism sector, was one of the biggest losers in the pandemic. The entire business came to a standstill at times. The 7-day incidence values, which have recently fallen across Europe, and the vaccination campaign, the progress of which is becoming increasingly noticeable, are awakening hopes for a successful restart in 2021, both in the industry and among those interested in cruises. It is not excluded. Just yesterday, a cruise ship with guests left Hamburg for the first time in seven months . This morning went for the first time since the outbreak of the corona pandemic in front of Palma in Mallorca a cruise ship at anchor, the “Mein Schiff 2” of the German shipping company TUI Cruises. It is said to be the first of more than 20 who will be calling this port by the end of August.

“Time was used”

“The chances of a real fresh start for the cruise industry are very good due to the measures that have been taken,” said Helge Grammerstorf, National Director of the Cruise Lines International Association Germany (Clia) tagesschau.de firmly. The providers used the time to expand the security measures against Corona, to keep the ships ready for the incoming operation and to strengthen the sustainability measures.

However, the memory of what happened during the start of the pandemic last year is likely to be fresh for many. Hundreds of vacationers were stuck on board, some for weeks, ports refused entry – the sometimes dramatic images are not so easy to forget.

“Safer than in the supermarket”

That is why protection against corona remains the determining issue on cruise ships. Grammerstorf is certain that health protection on the ships is guaranteed. Individual corona cases cannot be completely ruled out. But both staff and passengers would be tested before boarding, during the trip and also at the end of the trip.

“In principle, it is safer on the ship than when shopping in the supermarket, since the ships are completely sealed off from the outside,” says the Clia director. This also applies to shore excursions, which take place in closed groups that are not allowed to be left. “In the very rare event that a person should test positive during the voyage, it is provided that all affected persons and their contacts are taken off board to protect everyone else,” says Grammerstorf.

The shipyards are also suffering

The industry is an important economic factor. In Germany alone, the ocean cruise business is worth billions. According to the association’s data, the area with around 48,000 employees generated around 6.6 billion euros in 2019. Above all, however, it represents 80 percent of orders from German shipyards.

The German shipbuilders were therefore hit hard by the crisis. Because many shipyards have specialized in the construction and maintenance of cruise ships. Jobs have also been cut, both at the shipyards and among the cruise lines.

“Offers are accepted”

According to Clia, according to the latest available figures from September 2020, around 28,000 jobs have been lost, more than half. If the industry returns to a reasonably normal and predictable course of business, many will return. No wonder, then, when the hope of a new start becomes more and more urgent.

According to Grammerstorf, the customers are very enthusiastic about the offers, there is a great demand for cruises: “Demand pressure has built up while it was not possible to travel. The pre-bookings for 2022 are also very encouraging.” A more precise forecast is currently not possible, as the countries are only gradually opening up and therefore many departures are scheduled at short notice.

High costs, hardly any income

The business will hardly be profitable at first. No income, or at best low income, is offset by high running costs. After all, the ships cannot simply be completely decommissioned when they are in ports or in roadsteads. Some of the crew must remain on board, the ships must be kept functional, which requires regular and intensive maintenance. In addition, the huge passenger capacities of the ships cannot be used to their full capacity despite the start of travel activity due to the corona-related distance rules. Higher costs, also because of the various protective measures, are offset by lower income, which would have to be offset with higher prices. “At the moment, the main thing is to show that cruises can also take place safely under Corona conditions,” emphasizes Grammerstorf. The cruise operators have to accept that it is likely to be a losing business, at least initially

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Corona consequences for companies How much longer does the state have to help?

Status: 06/17/2021 10:18 a.m.

Today, the federal and state economics ministers are discussing how to proceed with corona aid for companies. Warnings against a permanent state economy are getting louder. But some industries are still deeply in crisis.

From Axel John, SWR

Tim Sandrock walks through the 3500 square meter hall of his event company. He points to huge loudspeakers, lighting systems or projectors that are piled up to the ceiling. “That would normally all be used outside in mid-June, at theater events, village festivals or music concerts”says Sandrock. “The camp could be swept through completely. We haven’t moved the technology for at least 15 months.”

He is one of the two managing directors of Flo-Service GmbH in Mainz. The company has 25 employees and six trainees. The company organizes up to 1500 events per year with a focus on the Rhine-Main area. “From the disco ball for the teenage party to the stage technology for a Sting concert, we cover everything”says Sandrock. Although the economy is taking off again across the country, Flo-Service still has few orders at major events due to the pandemic requirements. Most recently, among other things, the Oktoberfest was canceled. This sends a devastating signal to the industry.

Hope for further help

“We are broadly positioned and have thus been able to limit losses. The Federal Employment Agency helped us a lot through short-time work with around 31,000 euros per month. The bridging aids were also extremely important to us last year”says Sandrock. “However, our company has fixed costs of 150,000 euros every month.”

“I very much hope for further government aid” – Flo Service Managing Director Tim Sandrock. Image: Axel John, SWR

Flo-Service mainly draws on its operating reserves before Corona. In addition, there was a tough austerity course. Overall, sales have decreased by a good third. This means that Sandrock is still in a brilliant position in the industry. Other companies make a minus of 90 percent or are no longer there. “In the long run, of course, you can’t finance a company like ours. I therefore very much hope for further state aid”, he says. Cultural events have a pre-planning of three to nine months. In the uncertain Corona time, that’s half an eternity. “I am optimistic that the worst is behind us. But we still need support for a transition period. Otherwise all previous payments would be pointless”, says Sandrock.

Economics ministers discuss further aid

The federal and state economics ministers meet today in Düsseldorf – for the first time in attendance. One question is: what will happen next with the support for the economy? The bridging allowance and short-time work allowance were only recently extended to the end of September and even expanded. Now it is about a renewed extension until the end of the year.

The host of the meeting, the North Rhine-Westphalian Minister of Economic Affairs Andreas Pinkwart from the FDP, has already made a decision: “I am in favor of the aid being extended beyond the end of September until the end of the year”, he says. “Sectors such as the trade fair and event industry or the showmen will continue to suffer from a drop in sales in the fall. The Federal Ministry of Economics also sees it that way. I would also like to advocate this course at the federal government.”

NRW Minister of Economic Affairs Pinkwart is campaigning for a further extension of the corona aid. Image: dpa

North Rhine-Westphalia’s Minister of Economic Affairs also refers to legal constraints. “Unfortunately, to fight the pandemic, we had to restrict the freedom of trade. That is why the bridging aid is not subsidy, but compensation. Parts of the economy are only now gradually returning to normal”says Pinkwart. Now it is a matter of creating transitions for the companies concerned.

Share of businesses in need is falling

More and more companies seem to manage this transition. According to a study by the Institute for Employment Research (IAB), only eight percent of all companies saw their existence threatened by May. In April this value was still 13 percent. “The incidence values ​​are easing in many places, and at the same time private-sector companies in Germany are looking more optimistically into the future, “says IAB Director Bernd Fitzenberger. So far, the Federal Ministry of Economics has approved a total of more than 105 billion euros for the economy during the crisis. In addition, there is short-time work allowance of around 32.3 billion euros.

Criticism from economists

More and more economists are critical of the ongoing political assistance. Lars Feld is one of them. The 54-year-old economist is a proven regulatory politician, i.e. oriented towards the principles of market and competition. “The extension until the end of September is fine. But I do not believe in a renewed extension”, he says. “The upswing is in full swing. According to the Bundesbank, we will have growth of 3.7 percent in Germany this year. Next year it should be five percent. The need for an expansive fiscal policy that continues to be so strong is therefore decreasing.”

In addition, there are always deadweight effects at companies that find themselves in a difficult situation without this having anything to do with Corona. However, Feld limits his analysis with a view to the event industry. “If the state restricts certain companies in certain sectors of the constitutionally granted freedom of trade, then this must be compensated. But we will have to live with Corona in the long term. Therefore, I think it is questionable whether the events industry can continue as it did before the pandemic.”

Digital structural change also in the event area

Tim Sandrock in Mainz knows that too. In order to survive economically, Flo-Service had already digitized itself during the lockdown. “We have brought our analog offers into the digital space. Instead of a meeting with a projector, screen or interpreting service, we now also offer complete software solutions”says Sandrock. Corona has massively accelerated development. “There will be a growing digital share at events of all kinds in the future.”

In order not to complicate this structural change, Sandrock is also in favor of a foreseeable phase out of the aid. For the next few months, however, the company needs government aid again. If politicians decide in favor of renewed extension, Sandrock will submit an application. “But I am sure that the industry will recover quickly after Corona. I’m also counting on a catch-up effect. Man is a sociable being. That’s why we’ll be back.”

Change due to the corona crisis How the pandemic is changing the way we work

Status: 13.06.2021 3:42 p.m.

Fewer new infections, many vaccinated people and the imminent end of the obligation to work from home: in many companies, the return to the office is foreseeable. How much of the pandemic’s day-to-day work will be retained? From Peter Sonnenberg, SWR How should one put it when a terrible event like a pandemic also brings welcome and sustainable changes with it? Covid-19 brought sickness and death, unemployment and poverty, limitations and loneliness. However, the pandemic also led to progress in the world of work that was not thought possible, which without the virus would not have been conceivable or would only have been possible much later. “Before the pandemic, I sat in the car for three hours on the days I had to go to the office,” says Paula Widmer. That is bad for them and the environment. The 28-year-old is Internal Communication Manager at Schott in Mainz, but she lives in Heidelberg, a hundred kilometers away. Even before Corona, she sometimes worked at home. So she didn’t have to set up an office there first. She could just stay at home and do the many international switching conferences with the foreign locations from there. For her, working from home is a gift, and she hopes that her employer will continue to give employees this opportunity. However, she would like to see her colleagues a little more often and would like a mix of home and in-office.

05/25/2021

Corona as an accelerator

That is exactly what the future will be, assures work researcher Jutta Rump. “Corona was the burning glass, the fire accelerator for the development towards virtual work and communication,” she says. Many business trips were unnecessary in the past. You can now see who can work from home without sacrificing productivity. And most people would like the empty sky, empty streets and trains anyway. Corona has interrupted the usual processes for many people – and also called them into question. “When things go well, changes are difficult, that’s why digitization went so slowly, our workplaces hardly changed – and we have had ten years of partying in which no one wanted to change anything,” says the professor for international personnel management and organizational development. It was only the “external pandemic factor” that showed what was different and what was better, explains Rump. But the researcher also predicts a partial return to old habits. “We won’t go from one extreme to the other, no more business trips, just online conferences, but maybe only half as much of everything. People want the positive out of both, a healthy amount of everything.”

04/28/2021

No need to work in new ways

But not all of them can or want to be part of this new world of work. “I also missed setting up a nice study,” says Daniel Brixius. “But I don’t have far to go to the office, and I have two small children at home. I’m better at flow at work.” The marketing manager was mostly with the company even during the pandemic. A hygiene situation has been created there for colleagues who prefer to work in the company, which makes this possible. His colleagues in production couldn’t stay at home either, for nothing has changed for them. He is happy if the workplace situation remains flexible in the future, but more so for his colleagues. He himself feels more comfortable in the office, especially when a few more colleagues come again. And they don’t even have to all have their fixed desks.

05/26/2021

Companies have to offer flexible forms of work

Work researcher Rump calls these hybrid models. Anyone who wants to remain fit for the future as a company must offer flexible forms of work and also communicate virtually. Work-life balance is becoming more and more important to employees. If you have nothing to offer, you have to give an applicant a good reason. That is why the sectors with a shortage of young talent and skilled workers are driving the transformation that has begun. “But the whole business world will change faster with Corona than it would have done without it,” says Rump. “Retailers are becoming online retailers, virtual business processes run much faster than analog processes, and e-commerce and artificial intelligence also intervene in logistics and production.”

Expect new elbow mentality

But not everything is great, she points out. The “we-feeling” in the teams suffers when colleagues hardly meet, and the solidarity that was felt for one another during the pandemic will give way to a new elbow mentality. Because before that the coffers were full, the markets were distributed. Now both the state pots are empty and the reserves of many companies have been used up. But now, it is said, is the time to invest in order to stay “up to date”. “I fear a stronger global distribution struggle for a smaller cake and therefore less consensus,” said the professor.

05/19/2021

“Team spirit is more likely to arise when working in the office”

Nina Moyer does not fear that for the special glass manufacturer Schott. She is responsible for the company’s global talent management and now feels, on the alleged home stretch of the pandemic, internal joy and gratitude of the employees towards the company, which is getting through the crisis well. “But I am also convinced that we shouldn’t keep everything we’ve done in the past 18 months. In my opinion, the right spirit and team spirit is more likely to come about when working together in the office.” But you have learned a lot across all departments, says the HR manager. “Today we can make meetings much more compact and effective and realize that you don’t have to fly around the globe for every meeting, a lot goes online. After the pandemic experience, we appreciate the encounter, the togetherness in the office, much more – it used to be Of course. Never before have so many colleagues asked whether the summer party will take place again this year. ”

FAQ 01/12/2021

Mix as the best model

The labor scientist Rump also says that the mix will be the best model. As practical as home office is for many, it is even physically restrictive. You look at a monitor all day and hardly move. “Most people work more effectively at home, hardly take breaks, forget which day of the week is because every day appears the same. Who can handle it?” And with it, it also answers the question of whether employees work well in the home office or just mow the lawn. “Anyone who does not work properly in the home office has shit their employer in the office beforehand and slipped away where he could.” It is important that the new world of work is created together with the employees. Surveys have shown that there is a great desire to be able to choose – between the more conventional or the new way of working.

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”.

Because of taxes and bans How tobacco companies are realigning themselves

Status: June 8th, 2021 4:00 p.m.

The big tobacco companies still make billions in profits with cigarettes. But after decades of success, BAT, Altria & Co. are slowly turning around in the face of increasing bans and rising tobacco taxes. They are still running an extremely lucrative business. But the revenues and profits of the large tobacco companies are likely to come under further pressure in the coming years. New restrictions could reduce profits, higher taxes are supposed to increase government revenues in the Corona crisis and will further increase the prices for the “blue haze”. The first increase in tobacco taxes since 2015 is due in Germany. In the spring the governing parties CDU, CSU and SPD agreed on the framework conditions for tax increases . This should generate additional revenues of 11.3 billion by the end of 2025. A good half of this should be collected more through the classic tobacco tax, e-cigarettes should generate tax revenues of three billion euros and less harmful products in the industry should also contribute almost two billion euros. These include tobacco heaters that manufacturers had brought onto the market in recent years. The tax increases are to start gradually from 2022.

“Smoke-free Germany” called for

This is another turning point for tobacco companies after the sale of menthol cigarettes was banned in the EU in mid-2020. But the tax hike does not go far enough for health organizations. Significantly higher taxes are necessary to get people to stop smoking, according to a statement from the German Cancer Research Center (DKFZ). On the occasion of World No Tobacco Day on May 31, the non-smoking alliance and the German Society for Pneumology and Respiratory Medicine (DPG) called for a “smoke-free Germany” by 2040. There should still be a long way to go until then. Tobacco consumption fell by around 30 percent between 2011 and 2020. However, just under a quarter of adults in Germany still smokes.

Billions in income from cigarettes

The tobacco companies, for which Germany is an important but not a decisive market, have been changing direction for years, but Altria, Philip Morris International and British American Tobacco (BAT) continue to make good money with traditional cigarettes. BAT, for example, earned around £ 6.4 billion net last year, a large part of which was paid out to shareholders in the form of a dividend. And the current business forecast for the first half of the year, which was published today, does not read badly from the company’s point of view: The group expects growth of more than five percent for the current financial year. This also exceeds the previous forecasts. According to BAT, products of “new categories” such as e-cigarettes and tobacco vaporizers are more important. According to earlier information, the tobacco giant intends to win around 50 million customers for the vaporizer in the next ten years; the total customer base is currently 150 million. Big competitors Altria and Philip Morris are also well represented in the e-cigarette and tobacco vaporizer business. But without writing off the classic cigarette. Philip Morris Germany, for example, recently increased production at the Dresden plant. Due to temporarily closed borders in the pandemic, the demand for cigarettes from domestic production even increased. The company also saw higher demand for “fine-cut” tobacco. It is used for rolling cigarettes – smokers are increasingly looking for inexpensive alternatives to cigarettes from the pack.

Tobacco vaporizers and cannabis products

The coming years will show how quickly the tobacco companies can change course strategically. Some of the manufacturers want to offer new products without nicotine, but with caffeine. They also work on cannabis products. Further legalization of cannabis could open up new billion-dollar revenue streams for them. However, the pressure on the classic cigarette from the state is likely to accelerate and at the same time burden this process of change on the part of providers. This applies above all to the world’s most important sales market for tobacco multinationals, the USA: According to media reports, the new US government under Joe Biden wants to reduce the nicotine content of cigarettes to such an extent that they should no longer be addictive. In addition, menthol cigarettes could also face a ban in the USA.

From Axel John, SWR After more than a year of the Covid crisis, much of what was taken for granted in Germany is crumbling. In view of the problems with vaccination orders and the slow pace of vaccination, politicians are fighting against a loss of confidence. Public administration is seen by many as inefficient in times of crisis. And the pandemic has also brought structural problems to light in the economy. Doubts are mounting in many places behind the appearance of an actually self-confident industrial nation.

“We have become full and lazy”

The company is one of the hidden champions in Germany: deep in the west of Rhineland-Palatinate, Bernhard Clemens runs his family business, which produces special equipment for wine and fruit growing and exports it all over the world. His company is based in the unadorned industrial area II in Wittlich. Berlin and the federal government are very far away here. That fits with Clemens’ feeling towards politics. The longer the corona crisis lasts, the more worried the entrepreneur – about the future of the location.

From the point of view of the entrepreneur Bernhard Clemens (left), the Corona crisis has exposed many fundamental problems. Image: Axel John “We overestimated ourselves during the upswing. We have become full and lazy,” says Clemens. “The pandemic revealed the deficits of the Federal Republic in the economy as well. I don’t see any suggestions for improvement, only the management of the deficiencies. And that goes on and on.” His company got through the crisis without any losses. He didn’t even have to register short-time work. Only a few employees went into quarantine as a precaution. Nevertheless, the medium-sized company has many points of criticism. “What about a standardized, rapid exchange of information between the health authorities? Can federalism continue in an emergency? Why is digital teaching not running in schools? There are many fundamental problems behind this.” Even after more than a year, politicians still do not provide any answers. Clemens also heard this from many other entrepreneurs in the region.

Fax number instead of email address

Jens Pohlmann walks five kilometers further through the production halls of his company ProContur. Pohlmann points to huge production machines that manufacture sheet metal and plastic products. “After a crisis, we turned things around together. After a ten percent increase in the past year, it could even be 30 percent in 2021. But the increasing weaknesses of the location are driving me. Why don’t politics and administration finally tackle?” Asks the company boss. The economic consequences of Corona are a wake-up call for him. He initially fully understood the first lockdown in the spring of last year. “We did everything on our own: home office, working remotely, quick tests at our own expense. But to this day I still don’t see any substantial help or a well-thought-out political plan.” Instead, he was asked about the number of employees in the home office in a letter from the authorities. “There wasn’t even an email address given, but a fax number,” complains Pohlmann. “How are we supposed to tackle deficits such as a lack of digitization, a decaying infrastructure or the growing weaknesses in the education system? We have been seeing this for a year now. So we will fall behind and miss the boat internationally.”

Progress in vaccination helps the economy

The impressions from the Eifel are supported by several international studies. The Mannheim research institute ZEW has come to the conclusion that Germany as a location for family businesses has been pushed back further and further over the years. Compared to competitors from the USA or the Netherlands, the Federal Republic is now clearly lagging behind. Rising electricity costs, high taxes and poor infrastructure are criticized. The latest growth report by the International Monetary Fund (IMF) also shows disappointing results for Germany. The Federal Government repeatedly declares that the Federal Republic is coming through the crisis economically well. According to the IMF study, Germany is at the bottom of the list with a forecast growth of 3.6 percent for this year. Almost all other industrial nations achieve significantly higher values. One reason: the better the vaccination progress in the countries concerned, the better the economy develops.

“Missed future investments”

The economist Daniel Stelter deals with questions of location policy and the economic consequences of the pandemic. After his book “Coronomics” from last year, the economic expert has now published “A dream of a country”. In it, Stelter proposes far-reaching reform steps to get out of the Corona crisis. The former management consultant can understand the lawsuits of the two medium-sized companies from the Eifel. “The boom of the past few years was partly due to the cheap money from the European Central Bank. This also meant that German exports became significantly cheaper. The location, however, became increasingly unattractive,” Stelter analyzes. Companies would therefore have invested less. Productivity has stagnated. The state has also invested too little money in streets, schools or in the cellular network. “During this time, investments in the future were missed. This is another reason why we no longer have any sweeping innovations. We still live today on industries from the imperial era.” At the same time, there are great challenges ahead of Germany. The so important auto industry is facing a change – the exit is open. In addition, demographic change will change society in the next few years. Many skilled workers retire and are then absent from the job market. This is likely to further slow down economic development. All of these are additional burdens, according to Stelter. And what does that mean for the future federal government and also for society? “There is a lot of need for action. After the very expensive Corona programs, the rude awakening will come in two years at the latest,” predicts Stelter. “In my opinion, it is questionable whether politicians will have the strength and the courage to tackle the necessary structural reforms in the upcoming distribution struggles.”

Waiting for the “boom”

In Wittlich, company boss Bernhard Clemens is now sitting in his company’s office. He’s on the phone with a business friend in the USA. After the conversation, he hangs up in exasperation and shakes his head. “So far we have been seen as organizational world champions everywhere. I’ve just been asked again whether the coverage of the corona vaccination campaign in this country is fake news. Unfortunately, I couldn’t deny that. We have already lost our reputation.” Nothing remains of the announced “boom” of the Federal Minister of Finance in the reality of the corporate world. The location still has every chance, according to Clemens. “You have seen how quickly a country can switch out of the crisis – the USA with Biden. When are we going to switch?”

In Germany, business sentiment improved slightly in April, but the data from the Ifo Business Climate is not a real step forward: the index rose by 0.2 points compared to the previous month to 96.8 points, according to the Munich institute. After all, this is the highest value since June 2019. However, experts had expected a stronger increase to an average of 97.8 points. Nevertheless, the third rise in the leading indicator in a row is usually interpreted by economists as an economic turning point. The data also shows that the companies rated their current business situation better. The prospect of the coming six months, however, has clouded over.

Ifo Business Climate Index April 2021

The effect of the third wave

“The third wave of infections and bottlenecks in preliminary products are dampening the recovery of the German economy,” commented Ifo President Clemens Fuest. As in the past few weeks, the results vary depending on the sector. Things are still going very well for the industry, but optimistic expectations have been dampened. “45 percent of the companies reported bottlenecks in preliminary products – that is the highest figure since 1991,” emphasized Fuest. In manufacturing, however, the business climate improved to its highest level since May 2018. Capacity utilization increased significantly to 86.2 percent and is thus above the long-term average for the first time in almost two years. The industry is booming, but the bottlenecks in intermediate products such as semiconductors are the downside, said Ifo economic expert Klaus Wohlrabe. There is sand in the gears when it comes to procurement, across almost all industries.

Service sector worries

In the service sector, the mood clouded over again somewhat. The companies were less satisfied with their current situation. “Even the optimism that had recently emerged has disappeared again.” While the logistics sector is benefiting from the upswing in industry, the hospitality and tourism sectors in particular suffered from the lockdown. In the retail sector, the business climate picked up slightly – not least because of the better location at car dealerships, for example. With a view to the coming months, however, pessimism has noticeably increased again. According to the Ifo, the mood among companies also deteriorated in the construction industry.

Bottlenecks and delivery problems

“The catching-up process is stalling a bit,” commented Jens-Oliver Niklasch, economist at LBBW. Probably this has to do with the uncertain development of the pandemic and the response of politics to it – keyword “Easter rest”. Michael Holstein, chief economist at DZ Bank, said the current survey shows that the export-driven boom in German industry is continuing. “Due to the global demand for industrial goods, the bottleneck is noticeable in important intermediate products such as memory chips. It could take months to overcome the delivery problems, which is why the outlook is somewhat gloomy.” “The recovery should only gain real momentum when the lockdown is noticeably relaxed, which we expect from the end of May,” commented Jörg Kramer, chief economist at Commerzbank. Then consumers would probably dissolve part of the forced savings, which, according to our estimates, now amount to seven percent of their annual income.

Despite extensive criticism from the opposition, the Bundestag passed a majority of changes to the Infection Protection Act and thus created the legal basis for implementing the “Federal Emergency Brake”. In the roll call vote, 342 MPs voted for the law, 250 spoke out against the “emergency brake”. 64 MPs abstained. AfD, FDP and the Left announced their rejection, the Greens their abstention.

From curfew to distance learning

The “emergency brake” provides for uniform tightening of the corona measures nationwide as soon as certain incidence values ​​are reached. If the seven-day incidence exceeds 100 new infections per 100,000 inhabitants, night curfews are to come into force. With a value of up to 150, shops can still offer their customers shopping by appointment – provided the customers can be tested beforehand. And from a seven-day incidence of 165, schools must return to distance learning.

Tempered after criticism

The federal government had already presented the plans for the nationwide uniform “emergency brake” about two and a half weeks ago – at that time with even stricter regulations in some cases. For example, the nightly curfew should apply from 9 p.m. instead of 10 p.m. as it is now and close non-systemically important stores completely from a seven-day incidence of 100. But the criticism of these strict requirements was too great, so it was reworked. The now somewhat milder variant of the “Federal Emergency Brake” must be approved by the Federal Council tomorrow. If the regional chamber also agrees, the regulations should initially apply until the end of June.

Numerous objections from opposition parties

The “federal emergency brake” remains controversial. The FDP wants to lodge a constitutional complaint against the regulations before the Federal Constitutional Court. Party leader Christian Lindner said in the Bundestag that the curfews were “not necessary to fight the pandemic, but an encroachment on fundamental rights”. For the Left Party, the changes in the Infection Protection Act still leave too many gaps, especially with regard to companies. The parliamentary group leader Amira Mohamed Ali emphasized during the Bundestag debate. The work in the home office must be controlled more closely. In addition, it is not sufficient that employers have to offer their employees corona tests, but employees are free to take them. The Green health politician Maria Klein-Schmeink had criticized the regulations as “too half-hearted”. Fundamental criticism of the “emergency brake” came from the AfD. From the point of view of parliamentary group leader Alexander Gauland, the “emergency brake” represents an “attack on the rights of freedom, federalism and common sense” as well as a “disregard for fundamental rights”.

Economy speaks of “symbol politics”

The “Federal Emergency Brake” has met with a negative response in the economy. From the point of view of the managing director of the German Retail Association (HDE), Stefan Genth, the measures decided “missed the target”. Closing shops in particular does not help in the fight against the pandemic. The federal government continues to pursue “symbolism”. The German Tourism Association particularly criticized the ban on accommodation in hotels, guest houses and other guest establishments. With this measure, the grand coalition is raising “a general suspicion of tourist overnight stays without providing further, comprehensible justifications,” said managing director Norbert Kunz. The German Hotel and Restaurant Association Dehoga also joined in the criticism of the corona policy, which calls for a “special sacrifice” from the hospitality industry while the rest of the economy continues to operate. Therefore, there must be additional financial aid for the industry.

Thousands protest against corona policy

At the same time as the Bundestag debate, thousands protested against the federal government’s corona policy and the “emergency brake” in Berlin. According to the police, around 8,000 demonstrators had gathered on the Strasse des 17. Juni. Originally 500 participants had been registered for the protest. Around 2,200 officers were on duty in the course of the demonstration, and water cannons were also available, according to the police. The Reichstag building and the Brandenburg Gate were cordoned off over a large area. In the early afternoon, however, the police broke up the demonstration. “Unfortunately we had extensive violations of the hygiene regulations,” said a police spokeswoman for the decision. Around 150 demonstrators were also temporarily arrested, for example because they refused to wear mouth and nose protection. The “lateral thinking” movement had also announced a demonstration in Berlin today. But the administrative court in Berlin decided in an urgent procedure to ban the event. The assembly would pose direct threats to the fundamental right of third parties to life and physical integrity, the judges said in the reasoning.

By Klaus-Rainer Jackisch, Mr Köthen is a small, tranquil town in the middle of Saxony-Anhalt. The Rödel bakery has been here for 90 years. The traditional company survived war and socialism. But just a few weeks before the planned anniversary celebrations, Corona could now ensure that the oven goes out forever. At least that is the fear of master baker Frank Schwenke, managing director of the company, which has 14 branches and around 70 employees.

Gastronomy business has collapsed

Annoyed by the Corona policy, Schwenke sent a fire letter to the Federal Chancellor a few weeks ago, which ended with the drastic words: “I’m afraid of the day when I have to tell my employees that the Rödel GmbH bakery will be closed after 90 years is now in bankruptcy. ” The letter also went to the black-red-green state government of Saxony-Anhalt and Bavaria’s Prime Minister Markus Söder (CSU). The pandemic hit the bakery business badly: Sales collapsed by 20 percent, around 300,000 euros from reserves and private assets are gone. The November and December government aid came very late. Since January there has been nothing left because the operation falls through the grid of the ongoing bridging aid III. High investments in hygiene measures in the catering areas have proven to be unnecessary – because Schwenke is not allowed to open its bakery cafés. This is exactly where the main problem lies for the bakery specialist as well as for most companies in the industry: While the sale of rolls, cakes and other loose baked goods in the pandemic is going very well again after initial hesitation by customers, the important business is with the catering sector collapsed. However, this is of crucial importance in an industry characterized by fierce competition. “Many companies have made high investments in the catering sector in recent years,” says Susan Hasse from the Central Association of the German Bakers’ Trade. “Because only with this second mainstay can you survive the sharp price war with the discounters.”

No hotels to deliver

In fact, the food service sector often accounts for more than half of sales. But it has been missing for months because of the coronavirus pandemic. In addition to selling baked goods, other companies have specialized in catering for parties and family celebrations or delivering to hotels or canteens. Here, too, business collapsed. “We get a lot of letters from our members,” said the association spokeswoman Hasse. “Many people give up because there are hardly any prospects.” Most bakeries are still doing reasonably well compared to pure catering businesses because their counter sales are running smoothly. But overall the situation is already very tense, according to the association. The corona crisis hits the industry in a massive structural change that has been putting the mostly small and medium-sized companies under increasing pressure for years. Nowadays, more and more companies can only survive if they have several branches and an additional business area. Because against the cheap competition of the supermarkets they can not bake.

Fewer and fewer craft businesses

Almost every discounter now has a fresh bread corner and pretends to bake delicious rolls in the supermarket. In fact, it is mostly frozen goods from large bakeries that were produced there on the assembly line. In the market it is then only thawed and baked – all at prices that traditional bakeries cannot keep up with, as the association claims. Today, on “German Bread Day”, people proudly look at around 3200 types of bread in Germany – more than anywhere else in the world. But they would have their price. Company closings are therefore the order of the day even without Corona. Several hundred bakeries give up every year: The number of craft bakeries has fallen in the last 60 years from around 55,000 in the old federal territory to around 10,500 businesses now. The trend continues to decline. The craft businesses currently supply around 45,000 sales outlets, with over 265,000 employees working there.

Heavy sales slump also with confectioners

The situation at the pastry shops is also very tense – i.e. the specialist shops that specialize in the production of cakes and chocolates. It is true that many people tend to have a nice piece of cake, especially in Corona times, and “the companies have also come up with many creative solutions to increase sales over the counter,” says Julia Gustavus, General Manager of the German Confectioners’ Association. But as in the bakery industry, the cafés are also closed here – and that affects almost every confectioner. The industry’s turnover fell by 14 percent last year. For the first few months of this year, the industry association expects slumps of 40 to 50 percent. “The worst thing is the uncertainty of how things will continue,” says Gustavus. For a year now has been investing and experimenting again and again – but all without perspective. “That tires the entrepreneurs, all of whom are passionate about what they do.” Bakers and confectioners now hope that those responsible will accelerate the vaccination rate so that at least the outdoor catering can reopen: “If there is no normalization by June, it will slowly get tight,” says master baker Schwenke from Köthen. He is disappointed in politics. According to his letter, there were good discussions with the Saxony-Anhalt Ministry of Economics, where they are considering an aid fund for the industry. So far, however, no money has flowed from it. The reactions from the Chancellery and the Bavarian State Chancellery, on the other hand, were rather sobering. You would have already written kindly, says Schwenke. But in essence these are all just “irrelevant answers”.

“The corona situation is still serious. That is why our entrepreneurs still need our support,” said a spokeswoman for the Federal Ministry of Economics today. So that the difficult situation does not lead to an incalculable number of companies slipping into bankruptcy due to corona, the federal government has a new aid instrument on offer from today: the equity grant. A few days ago, Federal Minister of Economics Peter Altmaier said: The Corona crisis continues to hit many companies and employees hard. Some branches of the economy have been closed for more than six months: “We are making an additional offer of help to these companies and their employees. With a new equity grant, we are directly strengthening the substance of these companies and helping them through this difficult time.”

Who is eligible?

Starting today, companies can apply for the new grant with their initial application for Bridging Aid III. The Ministry of Economic Affairs announced that companies with a drop in sales of at least 50 percent in at least three months in the period from November 2020 to June 2021 are eligible. Companies that have already submitted an initial application for bridging aid III can apply for the new equity grant with an amendment from the end of April. The grant is based on the amount that a company receives reimbursed for fixed costs from Bridging Aid III: These include rents and leases, interest expenses for loans, expenses for electricity and insurance. The grant is up to 40 percent of the amount that a company receives for the eligible fixed costs.

How else is help?

During the crisis, the federal government decided on comprehensive aid programs . The best-known instrument is likely to be the bridging aid. Bridging Aid III supports companies, self-employed persons and freelancers in all industries, it is “the central program of the federal government for companies with a significant corona-related decline in sales”. According to information from the Federal Ministry of Economics, around 3.1 billion euros had been paid out by April 13, which corresponds to 42 percent of the aid requested.

Extraordinary economic aid

The so-called extraordinary economic aid includes the November and December aid. The federal government is thus supporting companies, the self-employed and associations that will be affected by the closings from November 2, 2020 to combat the corona pandemic. Those affected receive a one-off subsidy of up to 75 percent of the respective sales in the corresponding months of the previous year for the duration of the closings in November or December. As far as the December aid is concerned, more than 5.1 billion euros have been paid out so far, that is 81 percent of the aid requested. In addition, there is the restart aid for the self-employed, other hardship aid as well as sureties and guarantees for larger companies, family businesses and medium-sized companies from the economic stabilization fund. In addition, KfW offers cheap loans for companies, self-employed and freelancers who have got into financial difficulties due to the Corona crisis.

Tax assistance is also granted

There are also tax aids and simplifications, which you can find out about on the website of the Federal Ministry of Finance. These include, among other things, the deferral of tax payments and easier adjustment of tax prepayments, extended deadlines for tax returns by members of the tax advisory professions. Finally, there are still improved options for depreciation for movable assets, tax-free subsidies from the employer for short-time work allowance, home office flat-rate and the permanent increase in the relief amount for single parents.

The mountain of debt is growing

The bulk of the offers of assistance cost the state budget dearly. According to a study by the employer-related Institute of the German Economy (IW), national debt is growing rapidly in the pandemic . The federal, state and local governments will pile up around 650 billion euros in new debt by 2022. The debt of the German state will grow to a total of 2.7 trillion euros by then, it is said. The economic experts propose not to reduce debt too quickly, so that the state has leeway for investments in infrastructure, for example, and not too many billions flow exclusively into debt reduction.

On average, consumers spent at least 1250 euros less on consumer spending last year. This is the result of calculations by the Institut der Deutschen Wirtschaft (IW). In total, this corresponds to a decrease of 116 billion euros, according to a study by the employer-related research institute. The percentage decline in spending was 6.1 percent compared to 2019, the biggest slump in 70 years. “Short-lived consumer goods” such as clothing or shoes were particularly hard hit by the decline, according to the study. The purchase of durable consumer goods such as cars or furniture also declined in the course of the first lockdown, but demand in the second half of 2020 increased by five percent compared to the previous year. The temporary VAT cut could also have had a stimulating effect on consumption.

Service providers hit particularly hard

The service sector was hit particularly hard by the lockdown measures in 2020. In 2020 as a whole, the decline totaled 78 billion euros, according to the IW. That is more than two percent of the German gross domestic product. “The state-decreed closure of body-related services, restaurants, hotels, leisure and event facilities have made many consumer wishes impossible,” said IW scientist Hubertus Bardt. The data confirm a study by the Federal Statistical Office in March. This had also indicated that the development in the Corona crisis differs significantly from that in the financial and economic crisis of 2008/2009. At that time, private consumption was less affected and even proved to be a pillar of the German economy.

It will continue to save

The researchers do not yet see a fundamental recovery in the propensity to consume in German private households. For the first quarter of 2021 they put the consumption shortfall at a further 40 to over 60 billion euros. According to a survey carried out by the IW together with other research groups, 43 percent want to save the part of their income that remains after basic expenses. Usually it is less than 30 percent. In addition, only a third of those surveyed stated that they currently plan to spend on vacation – usually 45 to 50 percent.

Cities are suffering particularly badly economically from the Corona crisis. In them, unemployment rose faster and the business climate deteriorated more than elsewhere, as a study by the Munich Ifo Institute shows. The unemployment rate in major German cities rose by almost 1.5 percentage points from January 2020 to August 2020. In rural areas it only increased by 0.3 to 0.8 points. By the end of the observation period in December 2020, the situation had eased somewhat, “the cities, however, were still clearly the worst,” said the head of the Ifo Center for Macroeconomics and Surveys, Andreas Peichl, explaining the result. The researchers examined four regional so-called clusters, each with similar demographic, structural and infection-related characteristics.

More services, less industry

The main reason for the poor location of the cities is the different economic structure compared to rural regions. The cities are dominated by services, retail, hospitality and tourism, sectors most affected by the restrictions of the pandemic. In contrast, there is even more industry and manufacturing in rural areas and small towns, which have recovered particularly strongly after the first lockdown in the spring of last year. The high proportion of stationary retail – a loser from the pandemic – in the value added in cities is also proving to be a burden. On the other hand, large online retailers like Amazon are the winners, but are more likely to be based near highways in the countryside. These differences within industries could explain the observation that cities are worse off in the pandemic, according to the Ifo study.

Tourism vulnerability

Another weak point is the dependence on tourism. While the cities host many business travelers and foreign visitors in normal times, rural tourism – at least in summer 2020 – will primarily benefit from domestic travelers. A closer look at the hotel companies in the Ifo company surveys confirmed this. In addition: the infection rate was higher in the second wave in the cities than in the countryside, emphasizes the Ifo Institute – with fatal consequences. “The occurrence of infections could have increased the fear of infection and thus intensified the slump in consumption,” said the authors of the study.

How lasting is the effect?

The authors of the study write that it is not yet possible to assess whether cities will continue to lose out from the corona crisis in the long term. “On the one hand, cities should benefit more than average from any catch-up effects after the crisis, when retail stores can open and social consumption is possible again.” On the other hand, trends such as home office and digitization could make central city locations less attractive from the point of view of companies, “so that they migrate to cheaper rural areas”. A potential wave of bankruptcies, for example in the catering industry, could also affect cities more and thus make them less attractive. After all, an improvement in the economic situation in Germany and especially in the cities can only be achieved through sustainable containment of the pandemic, explain the Ifo researchers.

According to the Federal Statistical Office, the savings rate in Germany rose to a record level of 16.3 percent last year. This means that the Germans save more than 16 euros for every 100 euros of their disposable income. According to the statistics office, private households would not have spent their disposable income in 2020 to the usual extent. The government measures to contain the corona pandemic and the adapted behavior of the population to protect against infection with the corona virus would have led to this. As a result, consumer spending by private households fell by 5.4 percent last year compared to 2019. The savings rate increased by 5.4 percent compared to 2019.

Financial wealth reaches record level

Those who save have more money. According to data from the Bundesbank, the financial assets of private households reached the enormous sum of almost 7 trillion euros at the end of 2020. In the previous quarter, the assets were still 211 billion euros lower. The amount consists of cash, securities, bank deposits as well as claims against insurance companies and shares in investment funds. The Bundesbank’s data does not reveal how the enormous wealth is distributed among the citizens. However, the central bankers already know how the increase is made up. “In particular, behind the increase in financial assets were the increase in cash and deposits totaling 74 billion euros and the valuation gains on shares and other equity securities amounting to 61 billion euros,” said the Bundesbank. This means that at least the Germans who directly or indirectly own shares will also benefit from the current bull market on the stock market. Only today did the Dax hit another record high .

The number of shareholders is also increasing

In the meantime, the hunt for records on the international and national stock exchanges has also reached a broader public. According to the Bundesbank, savers, who are actually considered to be rather shy of the stock market, are increasingly investing in stocks or funds. “Private households remained very active on the capital market in the fourth quarter.” In the period from October to the end of December 2020, private households bought shares and investment fund shares totaling 21 billion euros. According to the Deutsches Aktieninstitut (DAI), the number of shareholders in Germany has climbed to the highest level in almost 20 years in 2020. Accordingly, 12.35 million people owned shares in companies or equity funds – almost 2.7 million more than a year earlier. The number was last higher in 2001 at almost 12.9 million.

Cash and deposits preferred

Nonetheless, stocks and funds still only make up a small part of the total financial assets of private households: at the end of last year, according to the Bundesbank figures, almost 805 billion euros were in stocks and other equity rights. In the case of investment funds, it was around 735 billion euros. Much of the wealth is still in cash and bank deposits, which hardly yield anything because of the slack interest rates . However, the argument of many savers is that they can be accessed quickly when needed. The volume of cash and bank deposits totaled around 2809 billion euros at the end of last year. Insurance and other pension products are still popular. At the end of December, their holdings totaled almost 2,458 billion euros.