Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure DE-2020-13/354 – Updated – measures in Germany
|Country||Germany , applies nationwide|
|Time period||Temporary, 23 March 2020 – 31 December 2024|
|Context||COVID-19, War in Ukraine|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Sandra Vogel (IW), Marc Breitenbroich (IW) and Eurofound|
|Measure added||07 April 2020 (updated 08 November 2023)|
The goal of the measure is to provide liquidity to companies to cushion the negative economic impact of the COVID-19 outbreak. It is part of a broader package adopted by the Federal Government at the end of March 2020. The rescue package also includes changes in tax law, all of them directed at easing tax burdens for companies plus further measures facilitating easier access to loans for companies of different sizes, start-up support or financial help for solo- or micro entrepreneurs as well as eased up rules for short-time work.
The German Federal Government set up the economic stabilisation fund and raises additional funds on the capital market, in order to provide a framework that guarantees companies‘ liquidity and solvency. Three instruments are under the umbrella of the Economic Stabilisation fund:
All these instruments are targeted at companies in the real economy that either provide a balance sheet total of more than €43 million or have more than €50 million in sales revenue or employ more than 249 employees annually (average figures). If smaller companies are important for Germany’s critical infrastructure, they can also be taken into account when granting these measures.
The single measures are also describes in this database:
No information currently available. However, the KfW issued a press release with the overall usage of the COVID-19 related measures administered by the bank. According to the press release, the KfW received over 70,000 loan applications (worth €50 billion) since 23 March 2020, 98.5% of these application were not higher than €3 million.
In a more recent press release, the KfW updated its previous numbers. As of 11 August 2020, the KfW received 81,359 loan applications, 99.8% of these applications were not higher than €3 million. Overall, 99.7% of all applications have been processed. The KfW has granted a total sum of €42.6 billion.
In another KfW press release from 6 November 2020, the bank stated to have received 95,000 applications for all its additional COVID-19 related programmes. The bank finalised 99% of the applications. Around 97% of the applicants were small and medium-sized companies. Granted sums amounted to a volume of nearly €46 billion. On 17 May 2021, the KfW reported that it has granted €56 billion in funds related to COVID-19 special programmes such as this one (in total).
In addition, the financial agency called Bundesrepublik Deutschland Finanzagentur which manages the Economic Stabilisation Fund, has listed a volume of €8.469 million in stabilisation measures as of March 2021. Companies that received financial support include Lufthansa AG (€5.847 million), TUI AG (€1.241 million), GALERIA Karstadt Kaufhof GmbH (€460 million) or Georgsmarienhütte Holding GmbH (€58 million). On 29 June 2021, new information became available regards the spending on this single programme. ZiA reported that €8.55 billion were granted for 19 cases as part of the Economic Stabilisation Fund.
The latest update by ZIA shows that as of 14 September 2021, €8.69 billion were granted in 21 cases as part of the Economic Stabilisation Fund. As of 14 December 2021, €8.8 billion were granted under this programme. As of 18 May 2022, nearly €9.04 billion were granted under this programme.
As of 30 June 2023, approximately €25 billion in funds have been drawn from the WSF with approximately €5 billion being attributed to 2023. The outstanding volume at this date amounts to around €17 billion.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
German social partners are usually consulted by the Federal Government on broader measures, though no formal tripartite social dialogue structure exists in Germany at the federal level.
The Confederation of German Employers' Association (BDA) and the German Trade Union Confederation (DGB) jointly welcomed the crisis package adopted by the Federal Government in spring 2020. Social partners highlighted in the press release to be in support of the KfW administered measures targeting companies.
Eurofound (2020), Economic stabilisation fund, measure DE-2020-13/354 (measures in Germany), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DE-2020-13_354.html
30 January 2023
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.