Corona virus is an additional, hardly calculable loading factor
The industry in Germany is under enormous pressure. The corona virus temporarily increases these stresses. The most important task of the federal government is to avoid panic. Support measures for companies must now be implemented quickly.
Due to the corona virus, the German government is considering measures to help companies. This is what VDMA General Manager Thilo Brodtmann says:
"Industry in Germany is already under enormous pressure in the face of a weak global economy and other burdens. The corona virus is now an additional, but currently hardly calculable temporary stress factor - especially for the globally networked mechanical engineering industry. The main task of the federal government must now be to give the population clear instructions for action and to avoid panic. We are well positioned in Germany and will master this challenge together.
Furthermore, it is positive that the Federal Government is now considering aid measures which must then be implemented quickly. In view of the worsening situation, companies now need above all the opportunity to make use of short-time working quickly and without red tape. And they need liquidity to bridge possible financial bottlenecks due to production stoppages - the state-owned development bank KfW, for example, could provide rapid assistance here. In addition, the grand coalition must finally take a substantial burden off the German economy in order to secure its international competitiveness even after the end of the corona burdens. This includes above all a tax reform, which includes the reintroduction of the declining balance depreciation method, and open world markets.