Coronavirus

Corona crisis: Groko is struggling for the stimulus package

Olaf Scholz (SPD) and Angela Merkel (CDU).

Reuters

The hope is called “V”. In the best case scenario, economic activity should take place this year. This means that while the economy rushed down quickly in the Corona crisis, it is recovering just as quickly.

In order for this to happen, the federal government wants to adopt an economic stimulus package. At the coalition committee on Tuesday next week, the CDU, CSU and SPD want to remove the last obstacles. Some projects are already foreseeable, others are controversial – sometimes even within the parties.

Great agreement on the children’s bonus

Finance Minister Olaf Scholz (SPD) comes up with a proposal that has a good chance of being implemented. He wants to pay families 300 euros for each child. This is supposed to tempt people to spend more money again and fuel consumption. According to the SPD, the child bonus should not count towards social benefits, but should be offset against the child tax allowance for tax purposes. Small incomes benefit more than larger ones. NRW Prime Minister Armin Laschet (CDU) had even asked for 600 euros. Basically, one seems to be in agreement, but not yet with the height. The aim of the children’s bonus is to relieve families. They suffered particularly in the Corona crisis due to the closure of daycare centers and schools.

However, an early abolition of the solidarity surcharge is off the table. A group of Union MPs proposed an end to the July 1 soli this week. However, this is technically not possible for the tax offices at short notice. The SPD would have only agreed to a partial abolition anyway.

The biggest noise is expected for a possible purchase premium for cars. According to information from NewsABC.net, the CSU in particular should insist that resistance can be expected from the SPD. In a paper by Finance Minister von Olaf Scholz (SPD) titled “Collection of Ideas” by NewsABC.net, the issue of purchase bonus is not even mentioned. Some on the Union side believed a deliberate provocation in the run-up to the Tuesday meeting.

The fronts of possible help for the municipalities are particularly confusing. Finance Minister Scholz has presented a plan that should not only compensate for the tax shortfalls in cities and towns, he also wants to help the municipalities with the old debts. The plan is expected to cost a total of 57 billion, of which the federal government will pay half. The SPD supports the plan, the Union faction is against it, the CSU also. However, some prominent CDUers like the concept, among them NRW Prime Minister Laschet and the Saarland Prime Minister Tobias Hans. In their federal states, there are many highly indebted municipalities that want debt relief.

Some sectors have been hit harder by the Corona crisis than others, which is why Scholz has also proposed help for restaurants, hotels, travel agencies, showmen, art and culture. In addition, the economic stimulus package should also include investments in climate protection and digitalization.

The question of how expensive the stimulus package will be remains open. The CSU had requested a ceiling of 100 billion, the IG Metall union demands a higher amount.

Coalitionaries are preparing for a long night

So there is a lot of need for discussion for the meeting in the Chancellery. In addition to hostess Angela Merkel (CDU), Vice Chancellor Scholz will also take part. In addition there are party leaders Norbert Walter-Borjans and Saskia Esken (both SPD), CSU leader Söder and Annegret Kramp-Karrenbauer (CDU). The group leaders Rolf Mützenich (SPD) and Ralph Brinkhaus (CDU) as well as CSU regional group leader Alexander Dobrindt. Economics Minister Peter Altmaier (CDU) and Family Minister Franziska Giffey (SPD) may also be invited.

The participants will probably not get much sleep: from circles in the Union it is said that one is preparing for a long night.

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