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For many companies and freelancers, the crisis in the crown is taking its toll. Finance Minister Scholz made it clear, however, that there is more scope for financial aid. It also gave hope to the culture and events industry.
Federal Finance Minister Olaf Scholz (SPD) sees enough room in the budget to provide financial aid to those affected even if the pandemic continues. “Our country has the financial strength to do everything this year and next to maintain control of the pandemic and cushion the associated economic consequences,” Scholz told the “RedaktionsNetzwerk Deutschland” (RND). “If necessary, we can add more.”
The minister described the previous measures of the Federal Government against the crisis as correct. “What we’ve done so far has an impact: the economy quickly regained its equilibrium, the economic recession is at least limited, and things are going much better than expected.”
At the same time, Scholz emphasized that he spoke from the beginning of a “new normal” to which the population would have to adapt. “As long as there are no therapies and the public is vaccinated, we have to monitor very closely what is happening and act quickly and decisively if the number of infections threatens to overwhelm our health system.”
Help for the culture and events industry
Scholz also offered the possibility of greater financial support for the culture and events industry particularly affected by the corona pandemic. “For example, I can think of financial help in case planned events have to be canceled due to the pandemic,” he said. In addition, according to him, there should be compensation for the fewest possible viewers during the pandemic. “I am also planning to support future cultural events so that they are still financially worthwhile when the number of spectators is severely limited by the protection rules of the crown,” he added.
When asked if the entrepreneurial salary required in the industry will also be available as a kind of short-time work allowance for the self-employed, Scholz said, “I also want to do something for the self-employed. Let’s have a few more days together and especially with the EU Commission to find good solutions. ” The SPD politician stressed that he has spoken intensively with the culture and events industry, which had joined in the “Red Alert” initiative. “My goal is to find the most personalized solution possible, even if it is complicated,” said the minister.
More debt than expected?
In view of increased aid from the crown, the federal government is expected to take on many more new debts in 2021 than previously anticipated. The Reuters news agency reported, citing an insider source, that the new debt will amount to more than 100 billion euros and even more in the range of 120 billion euros. In his draft budget for 2021, Scholz has so far taken on new debt of around 96 billion euros. Parliament has already approved up to € 218 billion for this year.
In this context, the FDP accused the finance minister of acting too lightly. “The Union must now stop the finance minister so that the debts do not get out of control,” said deputy chairman of the parliamentary group Christian Dürr of the AFP news agency. “It is incomprehensible why more and more debt is being incurred while revenues are better than expected and billions are sleeping in reserves,” Dürr said. He also called for a “notable relief in income and corporation tax.”
Dürr referred to the new tax estimate, which, according to media reports, is likely to predict higher government revenue for 2022 than previously forecast. Scholz presents the new forecast in the afternoon. Due to the pandemic, tax estimators are presenting the forecast for the third time this year.
