Berlin (Reuters) – The five economies are warning the government about buying premiums for cars and similar industry-specific aid in the Corona crisis.
Such projects would consolidate the tendency towards existing structures without having a resounding economic impact, the experts around their chairman Lars Feld justified in a contribution for the “Sddeutsche Zeitung” (Friday edition). Instead, the state should take broad-based measures such as expanding the options for tax loss carryforwards and carryforwards. To support those companies that have been successful and profitable in recent years, but expect losses this year due to the corona pandemic.
The state could also cut energy costs to relieve households and businesses. For example, the electricity tax could be reduced. Private and public investments should also be promoted – for example in education and transport infrastructure.
The Council of Experts for the Assessment of Macroeconomic Development – as the committee is officially known – expects a “historically large slump” in German economic performance in the first half of 2020 due to the Corona crisis. Despite unprecedented government bailouts, many companies face bankruptcy.