ifo Dresden: German Government Coronavirus Aid Has Achieved Its Goal

According to the ifo Institute, most of the German government’s coronavirus aid programs have achieved their objectives and were well justified. This is the finding of a comprehensive analysis of how the various programs were used. “The liquidity assistance for companies faced with bans on doing business and the expanded short-time work regulations were particularly fitting, because they were timely, targeted, and temporary,” says Joachim Ragnitz from the ifo Institute’s Dresden Branch. “Certain measures, however, such as the temporary reduction in the VAT rate or the granting of loans to already weakened companies, must in retrospect be seen in a critical light. These weren’t aimed specifically at companies that were in trouble as a result of the coronavirus.”