Enhancing Assistance from the Federal Government
In a recent report by the "Handelsblatt" newspaper, the German federal government is considering enhancing Coronavirus aid for struggling businesses, with a particular focus on the "bridging aid" that has been distributed sparingly so far. The report, based on a report by the Ministry of Economics to the Bundestag, does not specify when the improved bridging aid is expected to be implemented.
As of now, only a fraction of the 24.6 billion euros provided by the federal government for bridging aid has been claimed, with around 66,000 companies applying for a total of one billion euros. Criticism has been raised that numerous companies have not received bridging aid due to having a buffer of orders in April/May.
The report does not mention any specific changes to the "bridging aid" that will be made, but the government is considering abolishing the previously planned "cap amounts" for companies with ten or fewer employees, which often receive reduced grants. The ministry is also examining whether companies in the events industry can receive a higher grant due to the existential distress they are facing.
Intensive talks are ongoing between the Ministry of Economics and Finance to determine proposals for improving the bridging aid program. The ministry has requested to make the threshold of entry more flexible. Retailers can expect additional aid, and applications for improved bridging aid can be submitted in October.
The bridging aid is a form of financial support for businesses affected by the pandemic, aiming to address the economic consequences of the pandemic. The plan to improve the "bridging aid" has not been publicly announced yet, but the government's focus on enhancing this program suggests a commitment to supporting businesses as they navigate the ongoing challenges posed by the pandemic.
It is important to note that, as of mid-2025, there is no indication in the available search results that the German government is proposing further renewal or extension of sector-specific Coronavirus aid programs—including for the events industry and retailers. The most recent information focuses on broad economic investment strategies and budgetary priorities for 2025, not on maintaining or reshaping pandemic-era emergency support.
Businesses in these sectors must now rely on general economic measures rather than dedicated pandemic relief. The Investitionssofortprogramm (Immediate Investment Program) bill, due for adoption in July 2025, aims to stimulate private investment through tax incentives, but it is not targeted specifically at pandemic-affected industries.
Tax-related deadlines have returned to pre-pandemic norms, with the 2024 tax return due by July 31, 2025, marking the end of extended deadlines introduced during the pandemic. Tax advisor fees have increased, reflecting a broader shift in administrative costs, though this is unrelated to Coronavirus aid.
In conclusion, while the German government is considering enhancing bridging aid for businesses affected by the pandemic, it is crucial for businesses in the events industry and retail to adapt to a policy environment where pandemic-specific support is no longer available, but general economic stimulus and investment programs may offer indirect benefits. Businesses are encouraged to stay informed and seek guidance from financial advisors as the situation develops.
- The German government is contemplating changes in the distribution of bridging aid, particularly for companies struggling with medical-conditions such as the pandemic.
- In the realm of health-and-wellness, businesses in the events industry may receive higher grants due to the existential challenges they face.
- Apart from bridging aid, businesses might find resources in general-news like the Investmentssofortprogramm bill, which aims to boost business through financial incentives.
- Aside from pandemic-specific aid, businesses must be aware of general economic measures, such as the return of regular tax deadlines and the increase in tax advisor fees.