A financial package of historic proportions to help Hesse in the management of the Corona-crisis. From the planned special asset in the amount of 12 billion euros to be cleared by the end of 2023 primarily to tax losses of the country and the municipalities, informed the state government on Tuesday in Wiesbaden. The corona Fund is financed with borrowed money. The project is associated, therefore, with a credit authorization, for the Black-and-Green because of Hesse’s debt to a Two-third brake needs a majority in the Parliament and votes from the Opposition relies.
Why a financial tour de force is necessary?
“We have the largest economic crisis after the war”, said Prime Minister Volker Bouffier (CDU). It had to be answered with a great effort. “It is the time for Wish-You is not-what it is, but it is time for decisive Action.” The country should not only deal with the question of how the huge tax losses to be compensated, said Bouffier. “But we must also see to it that we get the infrastructure, we don’t have to look that companies go bankrupt, the workers will receive.”
What plans the state government specifically?
Alone, 5 billion euros are foreseen for the compensation of the loss in tax revenue of the country, as Finance Minister Michael Boddenberg (CDU) explained. A further 2.5 billion euros is to compensate the municipalities, among other things, interruption of business tax. The corona Fund also provides for 1.5 billion euros for Hesse’s economy, a share in company a of Hessen Fund. The money should be available also, among other things, for climate protection, an emergency aid program for students, the planned Bonus for nurses and for School Laptops.
Why Hesse is planning a special asset?
“We are not in normal conditions,” said Bouffier. Therefore, forbid to be a lack of clarity of the half-year to half-year. The country have chosen this program to three years to create – to create planning security. The path of a special Fund other Federal länder, including North Rhine-Westphalia and lower Saxony, in the words of boddenberg. The bundling is to ensure that all measures of the country “be transparent, and for Parliament and the Public in a comprehensible manner” shown.
How to be paid the money back?
Hesse debt brake specifies that crisis-related loans must be repaid within a reasonable period of time. The state government provides for a maximum of 30 years starting from 2021. On the basis of 200 million euros to a step-increase in the repayment way is planned at EUR 400 million by 2030. The remaining amount is to be paid in 20 equal steps back. The new debt would hurt, said Deputy Prime Minister Tarek Al-Wazir (Green). “But you are needed now.” The country needed to direct the expenditure in the direction of those who need to remove longest the debt, said the Minister of economy with a view to pupils, students and trainees.
what’s the plan now?
Already for this week’s talks with the Opposition are planned. At a special session of the Landtag on 16. June should be introduced to the “Good-future-securing law” underlying the corona Fund, as well as a Second supplementary budget in the diet. An adoption is planned before the summer break.
