Economic Stabilization Fund Mitigates Losses in Germany


As part of the Coronavirus (COVID-19) legislative aid program, the German Federal Government released a draft legislative proposal for the establishment of an economic stabilization fund (Wirtschaftsstabilisierungsfonds) to the total amount of EUR 600 billion to mitigate the economic consequences caused by the Coronavirus and to stabilize German companies with a certain minimum size in terms of employees, turnover and/or balance sheet total.

In this article published in Börsen-Zeitung, (Edition 59, Page 6), Prof. Dr. Wilhelm Haarmann, Renate Prinz, Daniel von Brevern and Andrea Stockhorst assess the proposal with regard to its measures and effectiveness by summarizing the respective support options, potential beneficiaries and the prerequisites and potential conditions to be met. The article also draws comparison to the actions taken by the federal republic during the financial crisis in 2008/2009, as the fund is now adopted in the same regulatory framework.