State aid - Five billion euros in Corona-relief funds disbursed excessively
The Federal Ministry of Economics estimates that approximately 5 billion Euros in Corona-Emergency Grants were paid out too generously at the beginning of the Pandemic in 2020. Of this amount, around 3.46 billion Euros were reportedly repaid to about 550,000 companies and self-employed individuals, according to a ministry spokesperson. Previously, WDR, NDR, and Süddeutsche Zeitung reported on this.
The Federal Corona-Emergency Grant could be applied for at the beginning of the Pandemic in the spring of 2020 for a three-month funding period. In total, according to the Ministry, around 13.6 billion Euros in federal funds were paid out.
Many repayment requests end up in court
The Federal Ministry explained that the Corona-Emergency Grant was quickly and bureaucracy-free disbursed to small businesses and self-employed individuals. However, it was the responsibility of the states to determine how the money was disbursed. The approval of funds stood under the condition of retrospective review and possible repayment from the outset.
According to reports from WDR, NDR, and Süddeutsche Zeitung, citing a survey, there are around 1800 lawsuits in North Rhine-Westphalia alone against repayment demands. 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 concluded.
- Despite the Federal Ministry of Economics addressing issues with overgenerous Corona-Emergency Grants in Berlin, there have been numerous repayment disputes in Germany.
- The repayment process for Corona-Emergency Grants has led to a significant number of lawsuits, with North Rhine-Westphalia having the highest number at around 1800, as reported by WDR, NDR, and Süddeutsche Zeitung.
- Economists have closely monitored Germany's financial response to the Covid-19 pandemic, including the distribution and repayment of Corona-Emergency Grants.
- The Federal Ministry of Economics, in an effort to address financial repercussions from the Corona crisis, implemented the Corona-Emergency Grant in Berlin, which was later scrutinized for overgenerous payouts.
- Despite the initial generosity of the Corona-Emergency Grants in Germany, the Federal Ministry of Economics later implemented conditions for retrospective review and potential repayment.
- The repayment process for Corona-Emergency Grants has been a contentious issue in the economic policy discussions related to the Covid-19 pandemic, with many lawsuits involving companies and self-employed individuals in Germany.
