Germany Sets To Save Small And Medium Business
On March 25, the Bundestag approved the largest anti-crisis program in the history of Germany, previously agreed upon by the coalition government of conservatives and social democrats. Among the measures to combat the economic consequences of the COVID-19 pandemic is a separate nationwide program to support microenterprises and self-employed in the amount of €50 billion. This money will be taken from the additional state budget of €156 billion adopted on the same day.
Thus, the 2020 budget of €362 billion, with which Germany has already lived the first three months, will be increased by 43 percent. To do this, the German government had to abandon the policy of budget-free budgets, which two cabinet ministers led by Chancellor Angela Merkel adhered to for seven consecutive years.
Germany will borrow the necessary money by placing government bonds on the stock market. There is no doubt that these securities will be bought by international investors on conditions that are quite favorable for Berlin. The level of interest rates in the world is now extremely low, and Germany is considered one of the best debtors.
In addition, the European Central Bank (ECB) guaranteed the Eurozone countries the purchase of bonds worth €750 billion and is ready to print them.