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COVID-19 Response EU Response EU Member States Response to the COVID-19 Pandemic: Germany

EU Member States Response to the COVID-19 Pandemic: Germany

by Simion & Baciu Law Firm May 8, 2020

Website simionbaciu.ro

  1. The Federal Cabinet has to reduce the sales tax on food in restaurants for one year, with the intention to aid the restaurants through the Corona crisis. The tax rate, which is reduced from 19 to 7 percent, is to apply from July. (https://www.zeit.de/wirtschaft/unternehmen/2020-05/corona-finanzhilfe-mehrwertsteuer-gastronomie-bundesfinanzministerium)

  2. The federal and state governments have basically extended the contact restrictions in Germany to June 5. However, Chancellor Angela Merkel (CDU) and the Prime Ministers have also agreed on easing in view of the falling number of infections. (People from two separate households can meet from now on. The previous requirement stated that only two people - excluding families or those from the same household - could meet outside in public.) (https://www.zeit.de/politik/deutschland/2020-05/angela-merkel-kuendigt-verlaengerte-kontaktbeschraenkung-bis-5-juni-an)

  3. The federal states can reopen all shops - without a square meter limit. Requirements for hygiene, controlling access and avoiding queues would have to be met. It is important that a maximum number of people is specified for customers and staff based on the shop's surface area. (https://www.tagesspiegel.de/politik/corona-gipfel-mit-merkel-was-ist-neu-was-bleibt-die-ergebnisse-im-ueberblick/25804716.html)

  4. Federal Minister of Health Jens Spahn wants to expand corona tests. The target is one million tests a week. (https://www.zeit.de/video/2020-05/6154975867001/jens-spahn-eine-million-tests-pro-woche) 

  5. Bundesliga games start on May 16. The season continues from where it was interrupted in mid-March. (https://www.zeit.de/sport/2020-05/fussball-bundesliga-saisonstart-geisterspiele-coronavirus)

  6. German airline group Lufthansa is awaiting the outcome of negotiations for a €9bn ($9.74bn) bailout, with Chancellor Angela Merkel and CEO Carsten Spohr fleshing out the details. However, it appears that a rescue package is not the only option for the carrier, as reports suggest bankruptcy is still being explored as an option. (https://www.zeit.de/wirtschaft/unternehmen/2020-04/lufthansa-staatshilfen-bedingungen-insolvenz-schutzschirmverfahren-luftfahrt)

  7. Secondary and primary school students will be allowed to return to school on May 4, though some states and localities opened slightly earlier, with priority being given to students who needed to take exams to advance. Other schools will open May 11, but with social distancing rules and likely reduced schedules. (https://www.zeit.de/video/2020-04/6152590598001/stefanie-hubig-kein-regulaerer-unterricht-vor-den-sommerferien)

  8. According to the Ifo Institute, the German economy is unlikely to return to pre-crisis levels before the end of 2021. (https://iran.ahk.de/mediathek/news-details/ifo-institut-wirtschaft-erst-ende-2021-wieder-auf-vor-corona-niveau) 

  9. The federal government wants to support employees in Germany with higher short-time work benefits and other aid measures. The Federal Cabinet approved a new social package that increases short-time work benefits to up to 87 percent. In addition, the duration of unemployment benefit I is extended by three months. (https://www.spiegel.de/wirtschaft/soziales/corona-krise-bundeskabinett-billigt-neues-sozialpaket-a-e20fcd69-c4bf-49ff-aec0-78e346e5c105)

  10. By April 26, Germany's companies had registered short-time work situation for 10.1 million people as a result of the Corona crisis. (https://www.zeit.de/wirtschaft/2020-04/bundesagentur-fuer-arbeit-10-1-millionen-menschen-in-kurzarbeit) 

  11. Germany has prolonged border checks with Switzerland and other neighbouring countries until May 15 to ensure that the new coronavirus is ‘further successfully contained’, according to the interior ministry. (https://www.swissinfo.ch/eng/covid-19_controls-extended-on-german-swiss-border/45737372) 

  12. The highest German court has partially declared the ECB purchase of government bonds unconstitutional. According to the finance minister, bond purchases are not monetary government funding. In this regard, government bonds would be in line with the Basic Law. (https://www.zeit.de/wirtschaft/2020-05/bundesverfassungsgericht-ezb-anleiheprogramm-teils-verfassungswidrig)

  13. German Foreign Minister announced the extension of the warning regarding the tourist trips abroad until the middle of June, due to the pandemic. (https://www.hotnews.ro/stiri-coronavirus-23947251-coronavirus-germania-prelungeste-avertismentul-calatorie-strainatate-pana-mijlocul-lunii-iunie.htm) 

  14. Germany raised 7.5 billion euros ($8.1 billion) via a 15-year syndicated bond deal, where the borrower appoints banks to sell debt directly to investors.(https://in.reuters.com/article/eurozone-bonds/germany-raises-75-billion-euros-via-first-syndicated-bond-since-2015-idINKBN22I2P3) 

  15. 2nd and 3rd waves of coronavirus deaths are now very likely, according to German researchers. (https://www.businessinsider.com/coronavirus-second-and-third-wave-of-pandemic-is-now-likely-2020-5) 

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