Union and SPD meeting: coalition decides on increased crown aid



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Status: 04.02.2021 12:34 am

The heads of the grand coalition sat together for four and a half hours to discuss common policy. Now it’s clear: Low-wage workers should get financial help, businesses will be more relieved.

The grand coalition wants to cushion the negative consequences of the corona pandemic with more financial aid for low wage earners and tax breaks for companies. As in the previous year, families should receive a bonus per child. The one-time surcharge on the child benefit must be 150 euros. This was decided by the coalition committee of the CDU / CSU and the SPD in the Chancellery, as both sides announced. Last year families received 300 euros per child to stimulate consumption in the crisis of the Crown.

Adult beneficiaries of basic income support should now also receive a one-time Crown grant of 150 euros. For freelancers suddenly in need and low-income employees, easier access to basic security will last until the end of 2021.

Moritz Rödle, ARD Berlin, on the agreements in the coalition committee

night magazine 00:00, 3.2.2021

Reduced VAT rate for catering

The grand coalition is also helping companies with losses related to the pandemic. With a long loss carryforward, you should be able to offset these losses on your tax return more comprehensively than before with gains from prior years. It is planned to increase the carry-over of losses to a maximum of € 10 million or € 20 million in the case of a joint assessment. According to the coalition, this should create the “necessary liquidity in the crisis.” Furthermore, the tax loss carried forward must be “managed with little bureaucracy.”

The CDU / CSU and SPD also want to help the catering industry, which is particularly affected by the shutdown. A reduced VAT rate of seven percent will continue to apply to meals in restaurants and cafes until the end of 2022. Originally, the regulation was limited to the end of June.

One billion euros for culture

Cultural workers also receive more support. According to the decision of the coalition, a follow-up program of the rescue and future program “Neustart Kultur” will be launched with another one billion euros.

Although aid to the economy was of primary concern to the Union, the SPD insisted on the social components. They are about the people “who have to get by on a particularly tight budget these days,” party leaders Saskia Esken and Norbert Walter-Borjans said shortly before meeting with Chancellor Angela Merkel. The new president of the CDU, Armin Laschet, also participated for the first time. The nearly five-hour coalition committee was the first top round of its kind since last August.

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