Approximately 5 Billion Euros in Corona-Relief Funds were disbursed excessively
The Federal Ministry of Economics estimates that approximately 5 billion Euros in Corona emergency aid were paid out too generously at the beginning of the pandemic in 2020. Of this amount, around 3.46 billion Euros were reportedly repaid by around 550,000 companies and self-employed individuals, according to a spokesperson for the Ministry. Previously, WDR, NDR and Süddeutsche Zeitung reported on this.
The Corona emergency aid of the Federal Government could be applied for at the beginning of the pandemic in spring 2020 for a three-month funding period. In total, according to the Ministry, around 13.6 billion Euros in federal funds were paid out. The Corona emergency aid was reportedly quickly and bureaucratically paid out to small businesses and self-employed individuals, explained the Federal Ministry. How the money was paid out was the responsibility of the states. The granting of funds stood from the beginning under the condition of a subsequent review and possible repayment.
According to reports from WDR, NDR and Süddeutsche Zeitung, citing a survey, there are around 1800 lawsuits in North Rhine-Westphalia alone against demands for repayment. This is the highest number among the federal states. Baden-Württemberg follows with over 1100 lawsuits, and in Germany as a whole there are over 5500. Approximately half of the proceedings have not yet been completed.
- The beginning of the pandemic in 2020 saw the generous distribution of around 5 billion Euros in Corona-Support-Measures, a significant portion of which was meant for businesses and self-employed individuals in Europe or euro sign countries.
- Despite concerns about misuse, the quick and bureaucratic distribution of these funds at the start of the Pandemic allowed for around 550,000 companies and self-employed individuals to receive aid, with a later requirement for a review and potential repayment.
- Even after the Billions in Corona emergency aid were issued, the following months saw the initiation of around 5500 lawsuits nationwide, with short-term impacts on businesses and legal disputes lasting about half the time.
