Corona crisis: Federal government expects total costs of 1,5 trillion euros

Supermarket with corona
Supermarket with corona
The Federal Government expects that overcoming the corona crisis will burden the public coffers with 1,446 trillion euros this year and next.

This emerges from the answer from the Ministry of Finance to a written question from the Left Group leader Dietmar Bartsch, which the newspapers of the “Redaktionsnetzwerk Deutschland” report on in their Monday editions. The 1,446 trillion euros include costs for the health system and the procurement of medical material, the support and stimulus programs for the economy, international aid payments, declining income and higher social security expenses, as well as government guarantees in the form of guarantees, quick loans and the participation of the Federal on the European reconstruction program.

In the current year, the Ministry of Finance expects crisis costs of EUR 400,4 billion for the federal government alone. The budgets of the federal states and municipalities will be burdened with an additional 89 billion euros. The Ministry of Finance forecasts the additional expenditure and loss of income at the social security funds at 26,5 billion euros. For the coming year, Finance Minister Olaf Scholz (SPD) is planning corona-related additional burdens for the federal budget of 74 billion euros. According to the forecast, the budgets of federal states and municipalities will be burdened with EUR 27,3 billion in the coming year due to the crisis, and social security with EUR 2,8 billion. All in all, the budget-effective corona measures are therefore 619,9 billion euros. Added to this are the state guarantees, which the Ministry of Finance specifies as 756,5 billion euros for the federal government and 69,8 billion euros for the states. When calculating the crisis costs, it must be taken into account that parts of the guarantees and loans will be repaid at a later point in time and that not all federal aid programs may be used in full. The total bill could therefore still decrease. However, it could also increase if a renewed shutdown were necessary due to the dynamic development of the number of infections. “It is absolutely right not to save into the crisis, but wrong not to care at all who will bear the costs,” Bartsch told the RND. "Who pays the 1,4 trillion euro corona bill? This is a central political question for the coming months, ”the left-wing politician continued. "The financing of the corona costs is a historical task for which there must be compensation, as provided by the Basic Law," demanded Bartsch. The hundred billionaires in Germany alone now have a hundred billion euros more than they did a year ago, said the parliamentarian. Bartsch demanded: "Billionaires and multimillionaires must be drawn on to finance this crisis, otherwise there is a risk of cutbacks in the welfare state and infrastructure."