600 billion package to save large companies from destruction
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Status: 00:01 a.m. | Reading time: 3 minutes
Olaf Scholz reaches deep into the state wallet
– – Federal Finance Minister Olaf Scholz reaches deep into the state wallet. 150 billion euros should help small businesses and solo self-employed people through the crisis. Scholz wants to support the clinics with three billion euros. – –
– The federal government wants to help companies with more than 2,000 employees with a gigantic fund. More money is used here than in the banking crisis. Finance Minister Scholz’s draft law contains a delicate clause. – – – Dhe federal government also wants to save large companies through nationalization in the corona crisis. The so-called Economic Stabilization Fund (WSF) is, according to current plans, to help companies with over 2000 employees and 320 million euros in annual turnover if they are affected by the crisis in an economic imbalance devices. The fund will have a total volume of EUR 600 billion. This emerges from the bill by Federal Finance Minister Olaf Scholz (SPD), which is available to WELT AM SONNTAG. The WSF is thus larger than the Soffin bank aid fund in the 2008/09 financial crisis with its volume of up to 480 billion euros. With EUR 400 billion, the fund can take on debt and liabilities from companies asking for help. Scholz wants to put 100 billion euros in the fund for credit authorizations for participation measures in the companies alone, and another 100 billion euros should be available for special programs of the state-owned banking group KfW in the wake of the Corona crisis. That means: If German companies find themselves in an existential imbalance, the Federal Government can secure them with an injection of capital. At the same time, the company would have to transfer capital shares to the federal government. In fact, it would be partially or fully nationalized. Later, when the crisis is over, these holdings will be privatized again. However, financial corporations are not covered by this bailout. Among other things, the Federal Minister of Finance hopes that this support will ensure that the companies concerned remain creditworthy with the banks and do not slip into insolvency due to liquidity bottlenecks. For the time being, the federal government itself would not incur any budget expenditure, the draft says. However, borrowing to refinance the fund leads to higher debt. The Ministry of Finance hopes that since the fund can acquire shares in companies and raise guarantee premiums, the burden on public budgets will remain limited. “Even if you add up all the previous aid programs because of the Corona crisis, we are operating in an acceptable debt ratio,” government officials said.
