Germany, the government will double the period of Cig and aid to SMEs
The government in Germany has decided to extend the partial unemployment scheme and aid to small and medium-sized enterprises. All the details (10 billion euros more will be needed)
New anti-crisis payments also in Germany. Here are all the details on the latest decisions of the Merkel government.
WHAT THE GOVERNMENT HAS DECIDED
The German government has decided to extend its Cig regime, as well as aid to small and medium-sized enterprises, in the face of the longer-than-expected economic impact of the Coronavirus epidemic.
THE AGREEMENT IN THE MAJORITY
An agreement on the issue was reached between the parties of Angela Merkel's coalition, the CDU-CSU conservatives and the SPD social democrats.
THE WORDS OF THE GOVERNMENT
“It will help employees and medium-sized enterprises survive this severe crisis and keep their jobs,” said German economy minister Peter Altmaier.
HOW MUCH WILL THE MEASURE COST
The Federal Employment Agency will need about 10 billion euros more to finance the extension of this measure, added Labor Minister Hubertus Heil.
WHAT CHANGES FOR COMPANIES
Until now, companies and employees have been eligible for state partial unemployment funding for up to twelve months. The device will now be applicable for 24 months.
THE REQUESTS
This extension has been heavily requested by companies, many of which are still inactive. In Germany, the state covers around two thirds of the salary in the context of partial unemployment.
THE OTHER DECISIONS OF THE GOVERNMENT
The government has also decided to extend a relaxation of the insolvency legislation for three months, until December 2020, in order to give more opportunities to companies whose cash flow has run out.
RATES AND BOND
Meanwhile, today, again in Germany, the German financial agency has auctioned 2.99 billion euros in federal Bund bonds maturing in May 2035. This was announced by the Bundesbank specifying that it is a security that has been reopened. The amount offered was 3.5 billion, the offers reached 4.575 billion and were accepted for 2.99 billion. The yield was -0.22% from -0.33% in the previous auction. The Finance Agency withheld € 510 million for market purposes, bringing the total size of the issue to € 3.5 billion, as previously announced.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/germania-il-governo-raddoppiera-il-periodo-di-cig-e-gli-aiuti-alle-pmi/ on Wed, 26 Aug 2020 14:30:02 +0000.