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Hannover: tables and chairs are in front of a closed restaurant in the city center. The Institute for German Economics believes that too much money has been paid from Corona’s aid to the catering industry. (Source: Hauke-Christian Dittrich / dpa)
According to a calculation by the Institut der Deutschen Wirtschaft (IW), the federal government pays 10 billion euros more than is actually necessary for aid in November and December. According to the calculation, the affected companies – mainly in the catering and events industry – made more money in many cases than if they had opened thanks to state compensation, “Welt am Sonntag” reported.
More compensation than expenses?
With reference to the Bundesbank figures, the institute assumes that on average half of the costs of the affected sectors are variable, that is, they do not even arise when companies are closed. However, the federal government pays companies 75 percent of sales as of the same month in 2019.
Although there are differences between individual industries, the newspaper cited IW’s calculations. However, among all those affected, around every third of a euro of the 30,000 million euros estimated by the federal government for November and December is paid too much.
