Impact of the Covid 19 pandemic: Further assistance from the German Government
What is new?
Despite the substantial scope of the first package of measures from the German government, the establishment of a "protective shield for employees and companies", it had already become clear that further measures would be necessary to mitigate the effects of the Covid 19 pandemic on the German economy (for the first package, see our newsletter of 18 March 2020).
Only ten days later, the German government has now significantly expanded the previous package. While this package still concentrated on ensuring liquidity for companies, in particular through loans with a significant participation by the state-owned Kreditanstalt für Wiederaufbau (KfW, i.e. Reconstruction Loan Cooperation) and guarantees, further measures to protect the economy are now being added. The total volume of state measures now extends to EUR 1.2 trillion: