Ifo Institute: Corona aid has achieved its goal
According to the economic research institute Ifo, most of the coronavirus aid has achieved its goal. Joachim Ragnitz, deputy head of the Ifo branch in Dresden, said: "Above all, the liquidity aid for companies with business bans and the extended short-time working rules were appropriate. They were timely, targeted and limited in time."
In contrast, the reduction in the VAT rate and the loans to companies that were already struggling had to be viewed critically. "They were not specifically aimed at companies that were having problems due to coronavirus."
The financing will also place a heavy burden on future generations: the repayment of the corona loans runs until 2058. The federal government had paid out grants of more than 75 billion euros to companies threatened by liquidity. In addition, there were temporary tax cuts - 20 billion euros in VAT alone - and almost 70 billion euros in loans to companies.
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Ifo Institute's deputy head in Dresden, Joachim Ragnitz, commended that the corporate liquidity aid and extended short-time work rules were effectively implemented "in time" and "targeted", aiming to assist companies under business bans. However, the reduction in VAT rate and loans to struggling companies required further scrutiny as they weren't specifically focused on coronavirus-affected businesses.
Source: www.ntv.de
