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-2020-45/1729 – measures in Germany
|Country||Germany , applies nationwide|
|Time period||Temporary, 01 November 2020 – 30 April 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Sandra Vogel and Marc Breitenbroich (IW)|
|Measure added||18 January 2021 (updated 31 May 2022)|
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.
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).
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.
As of 14 September 2021, local authorities have paid €6.6 billion to businesses that applied for the November Aid and €7.1 billion to businesses that applied for the December Aid.
|Applies to all workers||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
In general, social partners are consulted on all major labour market and social packages.
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.
Eurofound (2021), November and December Aid, measure DE-2020-45/1729 (measures in Germany), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DE-2020-45_1729.html
30 January 2023
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.