In his opinion, the German export economy will suffer even longer, so domestic demand must be stimulated. “That means: no tax increases, but tax cuts. The solos must be abolished faster and for everyone, ”said the CSU boss. “In addition, we should lower total income tax so that as many employees as possible have more money in their pockets.”
Söder also believes that the automotive industry must be strengthened with its own program. “This time not with a scrappage, but with an innovation bonus,” he said.
The state should provide massive support for the purchase of environmentally friendly vehicles. “This is how we secure jobs, protect the climate and improve the competitiveness of our automotive industry. That can even catapult us forward to Corona. ”
Criticism of Söder’s proposals comes from SPD leader Norbert Walter-Borjans. “Adam Riese was born in Bavaria, and the Bavarian Prime Minister could learn from him that additional 156 billion euros in loans cannot be paid off by reducing government revenue,” says Walter-Borjans of the “Augsburger Allgemeine”. “Markus Söder should rather stand with us for more investments and better pay for the real heroes in the corona crisis.”
Corona crisis could cost more than a million jobs
For almost three weeks now, public life in Germany and in numerous other countries around the world has almost come to a standstill as a result of the corona pandemic. Schools, restaurants, bars and most shops are closed and meetings of two or more people are prohibited in public spaces.
In order to keep the risk of infection as low as possible, many companies have temporarily shut down their productions. The economy fears a massive recession as a result of the pandemic. The measures initially apply until April 20, but Bavaria’s Prime Minister warned in the Handelsblatt interview not to give citizens hope that the exit restrictions could be withdrawn prematurely. The top priority is to significantly reduce infections and thus save lives. “Everything else has to submit to it.”
According to calculations by the Munich Ifo Institute, the impact of the pandemic on Germany could cost more than half a trillion euros and more than a million jobs. Ifo President Clemens Fuest explained that the crisis would lead to massive upheavals. In the most extreme case, the institute expects an economic downturn of up to 20 percent. The Ifo boss therefore calls for the bans to be gradually removed as soon as possible, taking the risks into account.
Söder warns, on the other hand, that what the exit restrictions and contact closures bring can only be said after Easter. It is not yet clear whether there will be any easing after April 20. “This date is not set in stone. This is about health, and it cannot be scheduled, ”said the CSU politician.
Special payments for caregivers
At the same time, Söder promises to give the nursing staff in Bavaria, who were particularly hard hit by the corona crisis, a special payment of 500 euros. “In addition, we have set up free food and drinks for employees in all hospitals, nursing homes and retirement homes,” said Söder.
A government spokesman said on Sunday that all nursing staff in Bavarian hospitals and old people’s and disabled people’s homes should receive the bonus as soon as possible. In total, the special payment should go to around 250,000 people and cost the Free State once around 126 million euros.
Greens faction leader Katrin Göring-Eckardt demands to use the funds from the health fund to pay thank-you bonuses to all German medical nursing staff in the corona crisis. “The federal government should now use all means and means to support direct financial bonuses to the staff, among other measures,” said Goering-Eckardt to the newspapers of the Funke media group.
In the crisis, nursing staff are doing “incredible things every day”. The Ministry of Health can now release funds from the health fund’s liquidity reserve and set up a nursing fund so that hospitals, emergency services and care facilities receive additional funds that they can quickly pay out to their employees as thank-you bonuses.
Federal Finance Minister Olaf Scholz (SPD) had already announced that he would like to make bonus payments to employees in the corona crisis tax-exempt up to an amount of 1500 euros.
The nursing industry was open to a supplement in the crisis. “We are open to a one-time bonus of up to € 1,500,” said Friedhelm Fiedler, Vice President of the Nursing Employers’ Association, the “Bild” newspaper. “This big gesture would make perfect sense.” However, every company has to decide on such a payment itself, said Fiedler.
With agency material
More: Söder does not want an exit discussion: “No reason to give the all-clear”.