Governments across the globe are scrambling at ways to help mitigate the economic damage caused by COVID-19. Germany is Europe’s largest economy, and plays a vital role in the global response of the crises, particularly within the EU. As the country heads towards a recession, the federal government has made it a point to ensure the well-being of its citizens. In recent months, Germany launched a broad-based stimulus package for businesses, workers, and students. These are the available government funding schemes in Germany.
Make Interest Free Loans Available for Students
On April 30, the federal minister of Education announced provisions for all qualifying students to receive interest-free loans as a result of the coronavirus pandemic. A loan amount of up to €650 a month issued by the state-owned development bank Kreditanstalt für Wiederaufbau will be made available. Additionally, the government also said €100m worth of non-repayable grants for students in emergency situations. The Deutsches Studentenwerk will be responsible for the distribution of the grant.
Investment Funding for the Production of PPE and Medical Devices
Germany’s economy is driven by exports with much of Europe and the developing world turning to Germany for medical supplies. Over the past few months, there’s been a shortage in PPE all over the world. After Europe became the epicentre of the coronavirus, the EU Commission imposed restrictions on the exportation of PPE. This restriction has since been lifted. As a measure to ensure a constant flow of essential medical items, Germany announced an investment fund to assist manufactures with the production of PPE and other medical devices. Applicants are required to prove expertise in the necessary field by means of references. Additionally, the subsidized facility must operate and produce medical items and PPE at least until December 31 2023.
Also, this directive hopes is to strengthen the production of personal protective equipment and medical devices for patient protection and to reduce national and European import dependencies.
Refund of Social Security Contributions
Employers that fall under the Act of short-time work qualify for a full refund on all social security contributions. Additionally, temporary workers will have access to compensation fund due to reduced working hours. The fund will pay for up to a period of 12 months.
Law on the Prevention and Control of Infectious Disease
According to the Remuneration Act, any persons falling ill due to the virus or subjected to quarantine will still receive their full remuneration for a period of up to six weeks.
Regulations to protect domestic and commercial tenants
A draft bill makes provisions for tenants affected by the COVID-19 crisis. Landlords cannot terminate lease contracts due to non-payment from April 1, 2020 – June 20, 2020. Tenants will have until June 30, 2020, to make payments on rent areas. This applies to both domestic and commercial tenants.
In addition to making the regulations on compensation for short-time workers, students, and tenants, the government also makes provisions for businesses, freelancers, consumers and entrepreneurs. To learn more about the various loans, you can apply for, visit: Coronavirus Loans to Mitigate Damage in Germany.