The Bavarian state government is facing increasing scrutiny as it begins the process of reclaiming over one billion euros in COVID-19 emergency aid from businesses and self-employed individuals, with many recipients now contesting the demands. The initial wave of “Soforthilfe” (immediate assistance) grants, distributed in 2020, are now subject to review, leading to claims of “Überkompensation” – overcompensation – and subsequent requests for repayment.
The IHK München (Munich Chamber of Industry and Commerce) is among the agencies tasked with administering the repayment requests, often citing Article 48 of the Bavarian Administrative Procedure Act (BayVwVfG) as justification. This article concerns the revocation of legally permissible grants. Yet, legal experts argue that the initial communication surrounding the aid program created a reasonable expectation among recipients that the funds would not require to be returned. In March 2020, then-Economics Minister Hubert Aiwanger stated that the aid, ranging from €9,000 to €15,000 depending on employee numbers, “would not have to be repaid.” Similarly, Minister President Markus Söder declared in the Bavarian Landtag that businesses would receive “fast, unbureaucratic immediate assistance of up to €30,000 that does not have to be repaid.”
The process of reclaiming funds has been complicated by multiple phases of communication and deadlines. Recipients were initially asked to report by December 31, 2023, or February 29, 2024, whether the anticipated liquidity crisis had materialized. Those who did not respond were sent a final request on September 9, 2024, with a deadline of October 31, 2024, to report the actual liquidity shortfall or any overcompensation. The Soforthilfe Corona service hotline, intended to address recipient questions, experienced a temporary disruption, being unavailable between December 23, 2025, and January 5, 2026.
Legal challenges to the repayment demands are mounting, with lawyers arguing that a full or partial waiver of the repayment may be justified under Article 59 of the Bavarian State Budget Code (BayHO), particularly for self-employed individuals facing economic hardship. The legal basis for these challenges rests on the principle of trust and the potential for estoppel, given the initial assurances provided by government officials.
While the state government maintains its right to reclaim funds in cases of overcompensation, the controversy highlights the challenges of administering emergency aid programs and the importance of clear and consistent communication. The IHK München and other agencies continue to process repayment requests, and the legal battles are expected to continue. The service hotline for Neustarthilfen, Überbrückungshilfen, and other economic aid remains open Monday through Thursday from 8:00 AM to 6:00 PM, and Friday from 8:00 AM to 4:00 PM, reachable at 089 51161111 or via email at wirtschaftshilfen[at]muenchen.ihk[dot]de.
