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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case DE-2020-45/1729 – measures in Germany

November and December Aid

November- und Dezemberhilfen

Country Germany , applies nationwide
Time period Temporary, 01 November 2020 – 30 April 2021
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Sandra Vogel and Marc Breitenbroich (IW)
Case created 18 January 2021 (updated 09 August 2021)

Background information

On 28 October 2020, the German Federal Government issued a partial lockdown. All retailers, hairdressers, fitness studios, theatres and similar business had to close down, except for essential services (such as food supermarkets, physicians, pharmacies etc.). In order to compensate for the loss in revenue of closed down business, the Federal Government set up further aid packages, the so-called November and December aid packages.

Content of measure

All companies that were directly closed affected by the governmental decree issued at the end of October 2020, can apply for further aid. This includes private, public companies, not-for profit companies, but also (solo) self-employed persons, freelancers or the liberal professions as long as the lockdown affects their main profession under the following circumstances: Applicants can receive grants, if they are directly affected by the lockdown. Applicants who generate 80% or more of their sales by doing business with directly affected companies/persons can also apply for November and December Aid. These target groups can apply for a 75% reimbursement of their revenues lost in November and December 2020 (revenues are calculated on the basis of the applicant's November and December revenues in 2019).

Use of measure

During December 2020, the Federal Government released first figures on the usage of the November Aid. On 10 December 2020, local authorities had received 173,401 applications worth nearly €3 billion). Grants worth nearly €500,000 had already been paid on the same reporting date.

As of February 2021, local authorities have paid €7.2 billion to businesses as part of the November and December Aid. Businesses can apply for both November and December Aid retroactive until 30 April 2021.

As of 29 June 2021, local authorities have paid €6.17 billion to businesses as part of the November Aid and €6.6 billion as part of the December Aid. The application process ended on 30 April 2021.

Target groups

Workers Businesses Citizens
Applies to all workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

In general, social partners are consulted on all major labour market and social packages.

Views and reactions

Employer organisation Dehoga (hotels&restaurants) welcomed the November and December Aid packages as such. However, the employer organisation also criticised the slow speed with which promised aid reached the affected businesses and the complexity of the aid regulations that were hard to handle for companies. United Services Union ver.di had advocated the inclusion of more target groups into the aid packages, faster and easier access to the grants and called for a guarantee that the grants will be paid throughout the whole COVID-19 pandemic.

Sources

Citation

Eurofound (2021), November and December Aid, case DE-2020-45/1729 (measures in Germany), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.