Germany is expected to pay €22 billion in coronavirus relief aid from January to June 2021 to companies and self-employed workers, as the impact of the pandemic extends into the next year, familiar sources said to Reuters.
The German aid package related to the Coronavirus for November to compensate companies affected by the closure measures will reach €14 billion this month, more than the expected €10 billion.
The government's Council of Economic Advisers expects the economy to contract less than earlier expectations, yet, a second COVID wave is overshadowing growth forecasts for 2021.
Companies can receive up to €200,000 per month to cover fixed costs such as rent, while persons can get up to €5,000 in the new round of relief measures.
Finance Minister Olaf Scholz said on Thursday that Germany has enough financial strength to launch stimulus measures if needed to counter the crisis on Europe's biggest economy.
Scholz said Germany plans to borrow more than €300 billion in 2020/21, yet, it needs to bear in mind rational relief measures.
The total amount of stimulus Germany has been able to provide to businesses and citizens stood at 8.3% of its output, which is just below the U.S. figure of 9.1%, according to think tank Bruegel.
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