Economic Affairs Minister Reports Over 100,000 Aid Requests Submitted in November
In an effort to accelerate aid distribution to businesses struggling due to the COVID-19 pandemic, Federal Minister of Economics Peter Altmaier has suggested disbursing non-repayable bridging funds directly to medium-sized German companies. These funds, aimed at companies with annual turnover not exceeding €750 million, would provide aid based on revenue lost and employee numbers.
However, to prevent misuse, companies would apply for these funds through tax advisors or auditors. This approach has been criticized for overburdening these professionals due to complex and changing eligibility rules.
Altmaier's approach aims to balance speedy aid disbursement with fraud prevention. He has pointed out that larger companies and medium-sized businesses with 10 to 30 employees often find the current advance payments insufficient.
In addition to this proposal, Altmaier introduced an "umbrella" scheme called Novemberhilfe during the second lockdown. This scheme, with an estimated €30 billion budget, enables fast delivery of aid to businesses, self-employed, and associations forced to close. However, it also requires intermediary tax advisor involvement.
The government expects certain economic sectors to return to growth phases starting from October 2020, indicating a focus on tailored relief measures designed to prevent company insolvencies and preserve employment.
As of Wednesday evening, the Federal Ministry of Economics had received over 100,000 applications for November aid. However, the article does not specify if the increase in advance payments would apply to direct applications or applications via tax advisors.
Despite criticism, Altmaier has refuted it and expressed openness to suggestions for improvement and acceleration. He emphasized the importance of using taxpayers' money responsibly.
The discussion about increasing advance payments for some companies is ongoing, and the state premiers have expressed concerns that the disbursement of aid is not reaching companies quickly enough. The number of applications and the progress of their processing were discussed in the RTL and n-tv program "Early Start".
[1] Source: RTL and n-tv program "Early Start" (Date of broadcast not provided)
- The ongoing discussion about increasing advance payments for some companies suggests that both the Government and the state premiers are concerned about the speed of aid distribution in politics and general-news, aiming to improve the process.
- Despite the criticism towards Altmaier's approach of requiring intermediary tax advisor involvement in both the bridging funds for medium-sized businesses and the Novemberhilfe scheme, he remains open to suggestions for improvement and acceleration, highlighting the importance of using taxpayers' money responsibly within other finance and business sectors.
