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Coronavirus: German government considering €500b bailout fund

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FILED – 27 April 2019, China, Peking: Peter Altmaier, Federal Minister of Economics, and members of his delegation visit the Forbidden City on the outskirts of the “Silk Roads” summit. Photo: Olli Geibel/dpa Photo: Olli Geibel/dpa

The German government is considering setting up a bailout fund of around €500 billion ($536 billion) for companies struggling to survive the economic fallout of the coronavirus pandemic, sources told dpa on Friday.

The emergency measures could include state participation in bailed-out entities.

The government is still in the early stages of establishing such a fund, with key points still to be hammered out, the sources said.

Economy Minister Peter Altmaier said the crisis could lead to state takeovers of struggling companies.

“There must be no taboos here. Temporary and time-limited state aid, including participations and takeovers, must be possible,” he told dpa.

Germany is under pressure to act amid the growing likelihood that Europe’s largest economy will slide into recession this year.

Sources told dpa on Friday that the government is planning on enacting emergency regulation to lift a cap on debt and allow significantly more spending for the crisis response.

Last week, the government promised businesses in the country an unlimited line of credit to offset the effects of the pandemic.

Source: dpa

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