BERLIN, March 19 (Xinhua) -- The German government plans to support freelancers and small businesses with a maximum of ten employees with financial funds of up to 50 billion euros (53.5 billion U.S. dollars) to dampen the negative economic effects of the coronavirus, German media reported on Thursday.
Finance Minister Olaf Scholz aims to organize the financial support in the form of a special fund that could provide loans independently, according to media reports. The financial aid should be distributed quickly and without complicated bureaucratic processes.
According to the German newspaper Handelsblatt, the government is also planning to apply an exception to the debt brake, which Germany introduced in 2009. This would include abandoning the commitment to a balanced budget, often referred to as "black zero."
"The debt brake is specially designed to ensure that one remains capable of acting in such a serious crisis as this," a government representative told Handelsblatt.
Under German law, the government may exceed the constitutional credit limits in the event of natural disasters or exceptional emergencies that are beyond the control of the state and significantly affect the financial situation. This exception must be approved by a majority of the members of the Bundestag (federal parliament).
Due to the drastic effects of the coronavirus crisis, many self-employed people in Germany -- among them musicians, photographers, artists, interpreters and nurses -- fear for their economic existence. As many shops have had to close and fairs, events and concerts were canceled, orders and sales of many freelancers in Germany have collapsed.
On Thursday, several economic institutes, such as the German ifo Institute for Economic Research and the Institute for Economic Research (DIW) demanded additional financial funds and highlighted the negative impact of the coronavirus on the economy.
Last week, the German government initiated measures to dampen the economic consequences of the pandemic and announced an unlimited credit program for larger companies as well as an expansion and simplification of short-time work compensation.
German media reported on Thursday that the additional funds would be necessary because the self-employed and micro-enterprises could not take advantage of the liquidity support presented last week by Minister Scholz and Minister for Economic Affairs and Energy Peter Altmaier.
On Thursday, Markus Soeder, head of the Christian Social Union (CSU), sister party of the governing CDU, said that the funds granted last week had only been a first step but a large financial and economic stimulus package of at least 100 billion euros to 150 billion euros would be needed. (1 euro = 1.07 U.S. dollars) Enditem
