The German government is ready to pump billions into the economy to assist companies affected by the new corona virus. According to the German finance minister, Olaf Scholz, there is no limit to the support program for companies.
Part of the measures includes tax relief for companies. Postponement of tax payments is also on the table as part of the support package. According to Scholz, the measures cost the German treasury billions. But he stressed that the country has enough financial strength to deal with the crisis.
Scholz also said that Germany may come up with a fiscal stimulus package later this year. State bank KfW has approximately 500 billion euros available to support the largest economy in Europe. Furthermore, it was reported that strategically important companies could be nationalized in extreme cases because of the virus. Furthermore, according to Scholz, Germany could issue more debt securities.
Scholz’s words are in line with those of his colleague Peter Altmaier of Economic Affairs in the magazine Der Spiegel. According to Altmaier, it is unlikely to lead to a large number of nationalizations. He also pointed out that Germany will do everything in its power to stop speculators trying to take a hit out of the crisis.
Altmaier also stated that he wants to support pharmaceutical companies that source many products from Asia and are therefore affected by supply disruptions. He believes that dependence on Asian imports should be minimized and that important medicines should be made by state-owned companies. According to Altmaier, a joint European medicine project can be set up for this.