Germany foresees 22,000 million euros of COVID aid to companies in the first half of 2021, according to sources

FILE PHOTO: German Finance Minister Olaf Scholz presents the Federal Government’s draft budget for 2021, in Berlin, Germany, on September 23, 2020. REUTERS / Fabrizio Bensch / Pool / File Photo

By Holger Hansen

BERLIN, Nov 14 (Reuters) – Germany expects to pay € 22 billion ($ 26 billion) in aid for COVID-19 from January to June 2021 to businesses and the self-employed, people close to the matter said. as the impact of the pandemic extends into next year.

On the other hand, Germany’s aid package for the November coronavirus to compensate companies affected by the lockdown measures will amount to 14 billion euros this month, they said. Initially, the Government expected to pay 10 billion euros.

The German government’s council of economic advisers expects the economy to shrink less than initially feared this year thanks to a strong summer, but a second wave of the COVID-19 pandemic is clouding growth prospects for 2021.

Under the new COVID-19 aid measure, companies can obtain up to 200,000 euros per month to cover fixed expenses such as rent, while solo entrepreneurs can obtain up to 5,000 euros.

Germany has sufficient financial capacity to unleash further rescue and stimulus measures if necessary to counter the impact of the pandemic on Europe’s largest economy, Finance Minister Olaf Scholz said on Thursday.

Germany plans to borrow more than 300 billion euros in total this year and next, but must carefully consider which aid measures make sense, Scholz said.

($1 = 0.8452 euros)

(Written by Arno Schuetze; edited by David Holmes; translated by Aida Peláez at the Gdansk newsroom)

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