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Wednesday, October 28, 2020
The federal and state governments are negotiating a new lockdown to control the growing number of corona infections. Timing is of the essence, so according to a report, the new measures should go into effect on Monday. Affected businesses will receive several billion dollars in help.
The federal and state governments want to control the number of dramatically increasing corona infections with massive contact restrictions during November. Across Germany, the measures will take effect on November 2 and not, as originally foreseen in the federal resolution, from November 4. After two weeks, around November 11, the Chancellor and the heads of government want to discuss again, evaluate the objectives achieved through the measures and make the necessary adjustments.
As the newspaper “Bild” reported on the change conference between the federal and state governments, Finance Minister Olaf Scholz said: “I think we need to agree to very drastic measures.” Scholz is said to have warned that “failure to act” could result in up to 100,000 infected people and possibly 1,000 deaths per day. “Nobody can want that.”
The companies affected by the blockade must be compensated for a large part of the resulting damages. According to Scholz’s plan, smaller companies should receive up to 75 percent of their sales compared to the same month last year as bridging and stabilization aid. In larger companies there should be up to 70 percent. In the case of a four-week lockdown, Scholz estimated the costs at between seven and ten billion euros. This also depends on which industries the emergency aid is awarded to.
This year a third supplemental budget was not necessary, according to the “Handelsblatt” in government circles. Funds for emergency aid could come from the existing pool for bridging aid. Of the 25,000 million euros planned there, so far only around 2,000 million euros have been summoned.
Aid that has already been granted, such as bridging aid or reduced work benefits, should be deducted from emergency aid. There should be no special test obligation, wrote the newspaper “Bild”.
In a proposal for a resolution from the Federal Chancellery that was known in advance, given the growing number of corona infections, it was possible to read about a temporary closure of theaters, cinemas, operas and concert halls, as well as pubs, bars and discos.
According to the Robert Koch Institute, health authorities reported 14,964 new corona infections in one day on Wednesday morning, nearly double the number on Wednesday last week and more than ever. The absolute numbers are only partially comparable to those of the spring, as many more tests are now underway and more infections are being discovered as a result. In any case, there has recently been a significant increase in new infections.
