Germany requests 156,000 million euros to finance public spending
The objective is to face the extraordinary costs caused by the viral outbreak and to mitigate the economic consequences
The Government of Germany has announced that the country will ask for a 156,000 million euros loan, through the approval of a supplementary budget item, with the aim of mitigating the economic consequences of the Covid-19 coronavirus, as well as of facing the costs extraordinary caused by the viral outbreak.
This was decided by the German Executive after an extraordinary Council of Ministers that was held this Monday and that the Chancellor Angela Merkel had to meet through videoconference since she was in quarantine for having been in contact with a person who had tested positive in coronavirus.
The government estimates that it will lose tax revenue of € 33.5 billion as a result of the pandemic, so with the € 156 billion to be borrowed, Germany’s net income will rise by € 122.5 billion.
Specifically, Berlin will use 55,000 million in pandemic control projects, another 50,000 million to support SMEs and freelancers in trouble; 7,700 million in social programs, 3,500 million in the purchase of medical supplies, the development of a vaccine and support for Germans abroad, 5,900 million in provisions for possible claims for damages.
On the other hand, the Government has approved the launch of an economic stabilization fund that includes a guarantee of 400,000 million euros to facilitate companies to refinance, capitalization measures worth 100,000 million euros and loans for up to another € 100 billion for companies to refinance programs from the KfW, the German ICO.