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This is why the local tax offices should pay subsidies

March 23, 2020 at 1:58 PM , Der AUDITOR
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SEEHEIM-JUGENHEIM. Michael Gütlich, the CEO of the Dedere Deutschland GmbH, explains why it is necessary to distribute financial aid by means of unbureaucratic channels. Fast action is required.

The local tax offices in Germany have all the relevant data relating to a company and to the staff at hand. Based on the costs for salaries and revenue reserves, conclusions can easily be drawn as to the extent of the subsidies companies or freelancers require to prevent inability to pay. Another quick help would be to suspend the payment of social security contributions for the next six to eight weeks. This would also be a big help for companies on trouble.

The payment of subsidies via the local banks and the Development Loan Corporation is not the right way to confront the issues we currently have to deal with. Companies need immediate assistance and often cannot wait for their claims to be reviewed over long periods of time. Many small and medium-size companies do not, in addition, know where to turn to. The question is also in how far the banks have enough staff to review claims. If our state wants to help, it would be better if the funds were not distributed by banks, which are currently confronted with the one of the worst economic crisis in history.  

For Germany to not only survive the virus but also the crisis it is essential that the bureaucratic monster is resolved to make fast act possible. Small businesses, such as hairdressers and one-man businesses, must be offered timely and unbureaucratic support. The temporary closure businesses that are not of systemic importance, especially those with direct human contact, is most certainly the right way to go ahaed. These businesses should not, however, be left to die. Startups are also affected. Many investors will most certainly lack the money to continue financing companies in the due course of time. In this crisis we now need pragmatists and not politicians who are trying to hide behind applications and forms.  

Emergency aid is mandatory. We all know that the world will be a different one after the coronavirus. Especially with regard to working from home and business travel things will be very different as the current circumstances show. Once the economic infrastructure has been destroyed it will hardly be possible to rebuild it quickly enough to get everything up and running right away . We will only overcome this crisis if everyone works together now - staff, businesses and the government. Together we all constitute the state.

Author: Michael Gütlich

Germany has issued a fund over EUR 400 billion to stabilise the economy. An additional EUR 200 billion are available for investments and credits. Mundus Agri is dedicated to reporting a clear picture of the international food and feed commodity market. We would like to hear your experiences. Please contact if you would like to share your experiences in dealing with the coronavirus crisis and how the measures implemented in your country impact your business.

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