Federal government puts together aid package for its own airports and air traffic control

November 23, 2020, 8:44 am

–

With the support of the federal states, the federal government wants to support the corona-related aviation industry in Germany. First and foremost, it concerns the airports in which the federal government is involved and air traffic control. The countries still have to agree.

–

The federal government wants to work with the federal states to develop a joint strategy to support the aviation industry, which has been badly hit by the corona pandemic. The aim is to enable long-haul flights again and to lift the entry restrictions, reported the “Handelsblatt”, citing government circles.

Among other things, there are plans to replace quarantine rules in favor of test concepts. A first meeting, in addition to the Ministry of Transport, the interior and economic departments and the Foreign Office, is loud “Handelsblatt” planned for early December.

Since a revival of air traffic is not expected before Easter, the federal government is also providing short-term aid in the amount of one billion euros. The federal government wants to invest half a billion euros and the states should also make the same contribution. From these there is “largely” positive feedback, it said.

The funds are to be earmarked for the airports in Berlin, Cologne-Bonn and Munich, in which the federal government is involved. The German air traffic control should also be supported. According to the proposal by the Ministry of Finance, the share capital in the 2021 federal budget is to be increased by EUR 300 million. Air traffic control belongs to the federal government.

The budget committee is discussing next Thursday in the so-called adjustment meeting on the federal budget 2021. The Bundestag should then approve the budget in mid-December.

The distressed airports are grateful for the willingness to provide support, said Ralph Beisel, General Manager of the Airport Association ADV. “However, it is still too early for cheers. Important detailed questions need to be clarified.” The ADV had approached the federal and state governments with the request that the airports receive the necessary subsidies quickly. “Otherwise many locations that were profitable a year ago will not survive the crisis,” warns Beisel.

No agreement yet at the “air traffic summit”

The corona crisis caused the number of passengers to collapse, and there is no rapid improvement in sight. The airports have little income, but have to pay running costs. At an “air traffic summit” of politics and business around two weeks ago, Scheuer had spoken of a rescue package of one billion euros. At that time, however, there was still no agreement with Scholz.

At the same time it became known that the federal government plans to spend significantly more money next year than previously planned. A substantial increase in expenditure of almost 70 billion euros is planned for the coming year, as shown by the presentation by the Ministry of Finance to the budget committee. This was available to the German Press Agency on Sunday. Much more money is planned, especially for economic aid.

300 billion euros in debt over the next two years

So far, the federal government has planned around 96 billion euros in new loans for the next year. For the current year, the Bundestag has approved fresh loans of almost 218 billion euros, mainly to finance aid packages. To this end, the federal government made use of an exception rule from the debt brake anchored in the Basic Law; this is also planned for the coming year.

According to Federal Finance Minister Olaf Scholz (SPD), however, the federal government wants to more or less stick to the previous new debt plans. It is planned to raise a little more than 300 billion euros for 2020 and 2021, said Scholz on Sunday at a joint press conference with Chancellor Angela Merkel (CDU) after the virtual G20 summit. “It will stay that way even with slight modifications in perspective.”

–