Critics voice disapproval over the slow distribution of coronavirus financial relief among economists
Germany's coronavirus aid distribution to businesses has faced delays, primarily due to the requirement that companies apply for funds through their tax advisors or auditors. This step was designed to safeguard against misuse of the aid, but the complex and frequently changing rules for eligibility, combined with the workload on tax professionals, have overburdened these advisors, causing further delays.
Concerns about using the tax system for aid distribution stem from this complexity and the heavy burden placed on tax advisors and auditors. Their role is intended to prevent fraud, but it has led to bottlenecks because these professionals find the application rules challenging and time-consuming, particularly given the evolving nature of the pandemic aid schemes. This has slowed down the distribution of vital funds to businesses.
The amount of aid for freelancers is 5,000 euros, while businesses can receive up to 10,000 euros. However, the delays have caused frustration among political leaders. Federal Minister of Economics, Peter Altmaier, was warned about the potential wave of bankruptcies by his colleagues from the states weeks ago. Christian von Stetten (CDU), the head of the Bundestag's parliamentary group for small and medium-sized enterprises, has expressed annoyance at the delays.
Carsten Linnemann (CDU), head of the Mittelstandsvereinigung (MIT), has demanded swift improvement in the payment of advance payments. He states that the payment of advance payments must become a top priority for the Federal Minister of Finance and the Minister of Economics and must work in the next few days. Linnemann's concerns are shared by Christian Lindner, leader of the FDP, who fears a "wave of bankruptcies" and holds Federal Minister of Economics Peter Altmaier (CDU) responsible.
In an effort to streamline the process, since November 25, advance payments can only be applied for online. However, there are still concerns within the federal government about organizing aid through the tax system. These concerns are due to the administrative burden, causing slowdowns and making timely disbursement difficult for businesses in need.
As of now, 71,308 restaurants, 11,666 cafés, and 29,515 bars are still affected by the current situation. The government is facing criticism for the delays in applying for corona aid for businesses due to software problems. Despite these challenges, the payment of advance payments remains a top priority for both the Federal Minister of Finance and the Minister of Economics.
[1] Source: Various news outlets, including dts Nachrichtenagentur.
The complex and frequently changing rules for eligibility of coronavirus aid, combined with the workload on tax professionals, have led to bottlenecks in the distribution of funds to businesses, causing frustration among political leaders, as evidenced by the demands for swift improvement by Carsten Linnemann, head of the Mittelstandsvereinigung (MIT).
The delays in applying for corona aid for businesses have brought up concerns within the general-news sphere, with Critical remarks being made towards the government, particularly regarding software problems impeding the application process.
