The demand for cars collapsed during the Corona crisis

The demand for cars collapsed during the Corona crisis

After years of political stagnation, Federal Finance Minister Olaf Scholz (SPD) surprisingly signaled readiness for a European safeguard for savings at the beginning of November. The condition is that risks in the banking sector are reduced at the same time.

“” We will certainly have to talk about transition periods, “said Kukies in Frankfurt. But the reduction of non-performing loans (NPL) is making headway across Europe. “” It may well be that in two, three, four years we will have reached a level where we can say that Europe has achieved the goal. “” Kukies emphasized: “” If these conditions are met, then we have to be ready to take the steps in terms of deposit insurance that all European partners ask of us. “”

Bavaria’s Prime Minister Markus Söder (CSU) rejects the Ministry of Finance’s plan for a joint EU deposit guarantee in its current form. “We are fundamentally skeptical about that,” said the CSU boss to the “Handelsblatt” “(Monday).

In Söder’s view, there is still a lot to be done, especially when it comes to reducing bad loans. “” We cannot assume these risks with a blank check, “said Söder. “” First of all, the risks in the banking sector must be reduced in a number of countries. Since hardly anything is moving here, however, a European deposit insurance does not make sense. The risk for German savers is simply too high. “”

The co-boss of the cooperative DZ Bank, Uwe Fröhlich, warned at the Frankfurt conference against deviating from the demand for the reduction of bad loans in the bank balance sheets. When it comes to deposit insurance, it makes no sense “to break long-term goals over the knee and accept side effects that would brutally harm us here in Germany,” “said Fröhlich.

So far, savings have been more or less well secured at national level. Germany’s Volksbanken and Sparkassen have been worried for years that in the course of an EU deposit guarantee, their comparatively well-filled pots for securing customer funds in a European system would be used to finance banking crises in other EU countries. Cross-border deposit insurance is intended to prevent bank customers from vacating their accounts in times of crisis and thus potentially worsening the crisis across Europe.

Berlin (dpa) – The German trade union federation has asked the federal government to secure people’s purchasing power in the corona crisis.

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DGB board member Stefan Körzell told the German Press Agency that consumer demand should not collapse any further if the economy was to run and unemployment should be kept low. Business associations called for additional help and less bureaucracy. Left parliamentary group leader Dietmar Bartsch demanded that the services of the state and the social systems should not be restricted. “Otherwise, not only social and economic, but also political upheavals can threaten.” “

A severe recession is expected in Germany as a result of the Corona crisis. The federal government wants to present an economic stimulus program by the beginning of June.list of essay topics However, the federal government, states and municipalities have to prepare for dramatic losses in tax revenues, the working group of tax assessors presented its new forecast on Thursday.

“The federal government has to put in place an economic stimulus program as soon as possible and thus start massive public investments and stimulate consumption,” said Körzell. “” That supports economic development and jobs and thus ultimately stabilizes the state finances. “”

Fairer pay in low-wage areas and a higher minimum wage could stabilize consumer demand, as could a longer period of unemployment benefit or a higher standard rate for basic social security. The need for public investment has long been clear. “” It’s about modern schools, fast internet connections, broadband expansion, a comprehensive charging infrastructure, more staff in the public service and a good, functioning health sector. “”

The President of the German Chamber of Commerce and Industry, Eric Schweitzer, told the dpa: “” The high tax shortfalls indicate how great the economic damage is already. The more the economy we get up and running again, the sooner the treasury will fill up again. That can’t be achieved with just any flash in the pan at individual points. “” The most important thing is to combine health protection and the most normal economic activity possible.

Politicians must support the path to normality wherever possible through a burden moratorium and little bureaucracy. To do this, some gaps in the aid programs would have to be closed.

The president of the family business, Reinhold von Eben-Worlée, told the dpa that the corridor for costly economic stimulus programs was “” oppressive “” narrow in view of the expected tax shortfalls in the next few years. “” There is hardly any room for reallocations either, because the budgets of the state, social security agencies and companies are on the verge of drying up. “What we can now afford, however, are effective measures to speed up, reduce bureaucracy and make administrative processes more flexible, for example in the case of permits.” be.

Left parliamentary group leader Bartsch called for a “” performance promise “” from the state to the citizens. He told the dpa that debates about cuts in government benefits because of the crisis rightly unsettled many people. “” Many threaten to lose their jobs and fear financial ruin. “” Therefore, there should be a “” crisis guarantee “”. “” More than ever, we need social stability and a close-knit network of guarantees and securities. “”

The DIHK and DGB are also worried about the trainees. The deputy DIHK managing director Achim Dercks told the newspapers of the Funke media group (Wednesday): “” Training companies would help in the short term if they could apply for short-time allowance for trainees without restrictions – such as for employees “”. Dercks also called on the federal government to pay a takeover bonus to companies that take on trainees from insolvency companies. DGB Vice Elke Hannack made a similar statement. She warned in the Funke newspapers that we must fight for every apprenticeship position. “” The Corona crisis must not turn into a training crisis. “”

Berlin (dpa) – The negotiations on the multi-billion dollar economic stimulus program in the Corona crisis have become a test of patience for the leaders of the black-red coalition.

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On the second day, too, the Union and SPD fought for hours in the Chancellery over crucial sticking points such as purchase premiums for cars and grants for families. In the early evening there was still no sign of a breakthrough.

Participants expected that the talks could drag on again into the night. There were always longer breaks in which the Union and the SPD discussed separately. Hard negotiations were expected in advance.

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At the negotiating table sat next to Chancellor Angela Merkel (CDU) and Vice Chancellor Olaf Scholz (SPD) the party and faction leaders of the coalition partners. Because the ideas were still far apart, they had interrupted their conversations after around nine hours on Wednesday night. The aim was to reach an agreement on Wednesday.

After the short-term aid in the Corona crisis, economic aid should now stimulate the economy again. It is primarily about investments and about increasing the purchasing power of families in particular, said Labor Minister Hubertus Heil (SPD).

The Union and the SPD had agreed not to disclose details of the negotiations. 60 to 70 suggestions were on the table at the beginning – but a decision should then be made about an overall package. It was clear that not all wishes could be financed, especially since tax revenues are falling because of the Corona crisis. CSU boss Markus Söder wants the federal government to be allowed to borrow a maximum of 100 billion euros, but the SPD does not think so. According to reports, a package with a volume between 80 and 100 billion euros could ultimately come out.

The sticking points included, for example, whether there should be a purchase premium for new cars and whether diesel and gasoline engines should also be subsidized or only alternative drives. The fronts also run right through the parties. The automotive industry also demands a premium from taxpayers’ money for combustion engines, as do the states of Bavaria, Lower Saxony and Baden-Württemberg, where the important manufacturers BMW, VW and Daimler are based. This means that Lower Saxony’s SPD Prime Minister Stephan Weil has a different position than his party leaders Saskia Esken and Norbert Walter-Borjans.

The demand for cars collapsed during the Corona crisis. The “” Wirtschaftweise “” Monika Schnitzer warned on Bayerischer Rundfunk that the so-called scrapping bonus in the financial crisis of 2009 was expensive and ineffective. From the point of view of the economist, bonuses for diesel and petrol engines would prevent the structural change that the automotive industry has to make – this is also how Federal Environment Minister Svenja Schulze (SPD) sees it.

Aid for municipalities was also controversial. Federal Finance Minister Scholz wants the federal government to take over old municipal debts, instead the Union is relying on the federal government to assume more housing costs for Hartz IV recipients and waive its share of the trade taxes. The Association of Towns and Municipalities warned of cuts: “If we are not helped, there will be budget freezes,” said General Manager Gerd Landsberg on Wednesday on ZDF – “” Morgenmagazin “”. “Then the municipalities will postpone investments or not push them at all.” “They could even be forced to raise property taxes.

There was also a dispute over the family bonus, a one-off payment of 300 euros per child, which was demanded primarily by the SPD. Such a bonus was conceivable, for example in the package with the doubling of the tax exemption for single parents requested by the CSU. The long list of negotiation points also included the question of whether the planned partial abolition of the solidarity contribution will be brought forward by half a year and will come in the summer. The Union also wants to abolish solos for everyone.

An economic stimulus program could also include relief in the electricity price for citizens and companies. It was advised to lower the EEG surcharge for the promotion of green electricity systems from 2021 through subsidies from the federal budget. The levy is paid through the electricity bill.

The coalition also advises on further billions in aid for medium-sized businesses, showmen, self-employed people or artists as well as tax relief for companies. This should open up scope so that companies can invest in digital change and climate protection. In addition, billions in aid could be decided for the railways and local public transport, which have high revenue losses due to the collapse of passenger numbers.

The duration of short-time work allowance could be extended to up to 24 months. The federal government also wants to focus more on the in-house production of medical goods and drugs and create an emergency reserve.

Berlin (AP) – The federal government wants to help the recession-plagued economy in the Corona crisis with a billion dollar economic stimulus program – but the details are controversial.

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Should taxes be cut so that citizens can spend more money and businesses can make ends meet? Or should families prefer to be supported? How should municipalities be relieved so that they invest more? The heads of the coalition parties want to discuss this on Tuesday.