Measures announced by the German Government must be implemented quickly
“The Federal Government’s aid package for the German economy, which the Cabinet approved today, mobilizes considerable funding to support companies that run into difficulties in the wake of measures to contain the corona pandemic,” said Hildegard Müller, President of the German Association of the Automotive Industry (VDA), commenting on today’s Cabinet decision.
“The immediate action on the part of the German Government and the impressive amount of aid demonstrate that the Government is well aware of the risks that the coronavirus poses to people in our country, the economy and German businesses. We therefore wish to express our special gratitude to all those involved in public policy and administration,” Hildegard Müller said.
The extraordinarily large sums being made available can make a major contribution to safeguarding firms’ liquidity for a certain period of time, Hildegard Müller explained, adding that this was crucial in the current phase of the crisis.
“Now this aid must reach the companies affected quickly and unbureaucratically,” the VDA president stated. “That also applies in particular to support measures provided through the KfW development bank. Swift disbursement is also important so that any additional measures necessary to stabilize the companies affected can also be brought in rapidly.”
The VDA sees the planned rescue package as an expedient measure. It is important that it should take effect quickly and that competition should not be distorted.
The German Association of the Automotive Industry also welcomes the relaxation of the rules for short-time work. Reimbursing affected companies with the full amount of social security contributions represents another important instrument for securing liquidity. All of these measures must now be put into effect rapidly and any doubtful issues must be resolved to the benefit of the firms so that the support materializes quickly.