Germany

(i) No amount/estimate: 1 April 2020, Release of the countercyclical capital buffer for banks from 0.25% to zero; (ii) No amount/estimate: 29 July 2020, The Federal Cabinet passed a draft law to strengthen the stability of the banking sector and protect taxpayers and investors. Large banks will have to maintain loss buffers of at least 8% of their total assets, which cushion losses in the event of a crisis (https://bit.ly/3gxzoTh).

(i) EUR500 billion (Bruegel estimate) tax deferrals for businesses, that is, EUR70 billion for direct corporate income tax plus EUR430 billion if we include indirect taxes and social contributions (assuming 75% tax deferral and 5% of gross domestic product [GDP] loss in 2020); (ii) No amount/estimate: 30 July 2020, tax deferral for companies, and waiver of enforcement of overdue tax debt payments (https://bit.ly/2PtMhSd); (iii) No amount/estimate: 2 September 2020, The federal cabinet approved the draft for the 2020 Annual Tax Act, which provides for tax improvements for investment, reduced working hours and affordable housing.

(i) No amount/estimate: Temporary VAT reduction (19% to 16% and 7% to 5%) until December 31; (ii) No amount/estimate: 6 May 2020, Sales tax rate for restaurant and catering services rendered between 30 June 2020 and 1 July 2021 will be reduced from 19% to 7%, except for beverage sales; (iii) 3 June 2020, A new stimulus package which includes EUR59.7 billion for an economic and crisis management package, mainly tax cuts and investments; (iv) No amount/estimate: 10 February 2021, Under a new tax aid law: (a) The VAT rate for meals in restaurants and pubs has been reduced from 19 to 7 percent until 31 December 2022; (b) 10 February 2021, No amount/estimate: The tax loss carryforward for the years 2020 and 2021 will be expanded again and raised to EUR10 million (EUR20 million euros for joint assessments). As of 26 February, this law has been approved by the Bundestag.

(i) 23 March 2020, EUR50 billion in direct grants to distressed one-person businesses and micro-enterprises; (ii) EUR7.7 billion to expand access to welfare payments such as child allowance and income support, removing means-testing rules, and including self-employed workers; (iii) No amount/estimate: 22 April 2020, The government decided to increase the replacement rate of lost net earnings to 70% for childless workers and to 77% for workers with children from the fourth month of short-time work onwards if they have reduced their working time by at least 50%. In the seventh month, payments are increased further to 80% and 87% respectively. 20 November 2020, The regulation to increase the short-time allowance will be extended to 31 December 2021 for all employees who are entitled to short-time allowance by 31 March 2021. The existing fixed-term additional income regulations will be extended until 31 December 2021, as remuneration from low-paid employment (so-called mini-jobs up to EUR450) that was started during short-time work remains free of credit; (iv) April 2020, The labor agency will cover 100% of social-security contributions for lost hours of short-time workers; (v) No amount/estimate: EUR300 one-off for every child; (v) 14 May 2020, Under the Social Protection Package, the increase in short-time work benefits leads to additional expenditure in the budget of the Federal Employment Agency of an estimated EUR680 million. The extension of the eligibility period for unemployment benefit leads to additional expenditure in the budget of the Federal Labor Agency estimated around EUR1.95 billion; (vi) 3 July 2020, EUR853 million is allocated for children, young people, and families, with the passage of the Second Supplementary Budget 2020 on 2 July 2020. This creates the financial prerequisites for implementing the measures of the economic stimulus package; (vii) 23 July 2020, EUR43.5 million increase in scholarship for cultural workers; (viii) No amount/estimate: 28 October 2020, The Federal Cabinet has decided to continue to support social service providers until 31 March 2021. With a regulation in Social Protection Package I, it obliged the service providers such as the German Pension Insurance, the Federal Employment Agency and the social welfare offices to pay the institutions subsidies of up to 75% of the previously paid contractual benefits; (ix) No amount/estimate: 13 November 2020, Bridging Aid III runs from January 2021 to June 2021. This also includes the so-called "restart aid for self-employed people," taking into account the special situation of self-employed soloists, in particular artists and cultural workers (https://bit.ly/2JbUevu); (x) No amount/estimate: 18 January 2021, childhood illness days for working parents are doubled from 20 to 30 days per child, and for single parents, from 30 to 60 days per child. If there are several children, each parent is entitled to a maximum of 45 working days, while for single parents, the entitlement increases to a maximum of 90 working days. The regulation is to come into effect retrospectively as of 5 January 2021; (xi) 10 February 2021, EUR2.7 billion - Parents receive a one-time child bonus of EUR150 for every child eligible for child benefit in 2021. A total of around 18 million children in Germany benefit from the child bonus; (xii) No amount/estimate: 10 February 2021, Beneficiaries in the basic security receive a one-off payment of EUR150; (xiii) No amount/estimate: 17 February 2021, Self-employed people who suffered from a drop in sales, as well as those working in the performing arts industry, will get EUR7,500 as a restart aid for the period January 1 to June 30.

(i) EUR10 billion for keeping people employed, by expanding the reduced hours compensation benefit scheme (‘Kurzarbeitergeld’). 26 August 2020, The subscription period was extended up to 24 months, at an additional cost of EUR10 billion (i.e. until 31 December 2021 at the latest); (ii) Subsidies to loans (included in the EUR357 billion mentioned in Measure 1) made available through KfW; (iii) Employer grants for short-time work benefits and seasonal short-time work benefits for wage payment between 29 February 2020 and 1 January 2021 will be up to 80% of the difference between the target salary and the actual salary; (iv) 3 June 2020, A new stimulus package which includes Bridging Aid to businesses hard hit by the COVID-related restrictions. 18 September 2020, The bridging aid was extended and expanded for the months of September to December 2020, and then to July 2021. (https://bit.ly/3mHeQet), (https://bit.ly/32WUGFr); (v) No amount/estimate: Increase on limits to offset losses against profits from previous years; (vi) 7 August 2020, The European Commission has approved EUR6 billion scheme to compensate companies providing regional and local public passenger transport services in Germany for the damage suffered due to the coronavirus outbreak; (vii) 29 October 2020, Companies with up to 50 employees and the self-employed will receive 75% of their income in support (EUR10 billion); (viii) 6 November 2020, The federal government has launched quick and unbureaucratic aid of up to EUR10 billion in grants that offer further support for companies, businesses, associations, and institutions that are particularly affected by the current COVID-related restrictions (https://bit.ly/2Iyx8iw); (ix) 20 November 2020, “Umbrella” scheme to support uncovered fixed costs of companies affected by coronavirus outbreak has been approved by the EC (EUR30 billion); (x) 21 January 2021, EUR12 billion umbrella scheme to compensate companies for damages suffered during the COVID-19 outbreak; (xi) 1 February 2021, As part of the EUR1 billion Neustart Kultur package: (a) EUR250 million to help cultural business such as theatres and literature houses reopen, (b) EUR20 million to support small, regional broadcasters whose advertising revenues have collapsed. The balance is under item (iv) of Measure 5B5; (xii) No amount/estimate: 1 March 2021, Companies can now choose which aid they want - the small aid, the fixed costs or the compensation scheme. In addition, the EU Commission has increased the maximum amounts for the subsidies: Small subsidies are now possible up to EUR1.8 million (previously a maximum of EUR800,000), and fixed cost subsidies up to EUR10 million (previously a maximum of EUR3 million); (xiii) No amount/estimate: 19 March 2021, The federal government is expanding its "Secure apprenticeship positions" program, specifically by: (a) doubling premiums given to companies employing apprentices/trainees, (b) increasing the number of eligible companies, (c) extending the program to cover apprenticeships up to 2022; (xiv) 19 April 2021, No amount/estimate: Support for retailers of seasonal goods such as calendars and travel guides, (a) reimbursement for losses in value of unsold goods and (b) special depreciation options; (xv) 14 May 2021, EUR45 million as an aid expansion under the Neustart Kultur program to support the film and cinema industry; (xvi) 28 May 2021, The European Commission approved a EUR10 billion German scheme to compensate companies for damages related to the coronavirus outbreak to be in line with EU State aid rules; (xvii) No amount/estimate: 8 September 2021, The government extended additional aid schemes to support companies hit particularly hard by the pandemic as well as musicians, artists, and other solo self-employed.

(i) 3 June 2020, A new stimulus package which includes: (a) Strengthening Länder and municipalities (EUR15.6 billion), (b) Social expenditure (EUR9 billion), (c) Future program (green and technological) (EUR47 billion), and (d) Humanitarian aid (EUR3 billion); (ii) 3 July 2020, NEUSTART KULTUR: Aid for cultural institutions for the preservation and strengthening of the nationwide important cultural landscape (EUR1 billion). 11 September 2020, Financing a default fund at EUR50 million is provided for films and series productions in order to cushion COVID-19 related disruptions. 15 September 2020, EUR15 million is earmarked for sociocultural centers, networks and similar initiatives to help them in getting back into their program work. 16 September 2020, EUR25 million is allocated for local and private museums, exhibition halls and publicly accessible memorials to enable them to make the necessary investments to resume operations under the applicable COVID-19 regulations; (iii) 29 January 2021, EUR500 million from the federal government so that schools can give out laptops to teachers; (iv) 1 February 2021, As part of the EUR1 billion Neustart Kultur package: (a) EUR480 million for maintaining the cultural infrastructure, (b) EUR150 million to strengthen new formats for digital communication, (c) EUR100 million to compensate pandemic-related losses of federally funded cultural institutions. The balance is under item (xi) of Measure 5B4. As of 26 March 2021, a second EUR1 billion tranche has been approved, going to (a) maintaining and strengthening cultural production and communication, (b) renovations for cultural institutions, and (c) compensating pandemic-related losses of income. As of 22 April 2021, the funds under the program will be available until the end of 2022, possibly 2023; (v) 15 March 2021, EUR15 million in research grants to projects that study the long-term social consequences of the pandemic; (vi) 5 May 2021, Under the EUR2 billion "Action Program Catching Up After Corona for Children and Young People", EUR1 billion is allocated to reducing pandemic-related learning backlogs by implementing summer camps and learning workshops and as well support measures to accompany lessons in the core subjects at the beginning of the new school year. The other half of this measure is in Measure 05B6; (vii) 12 May 2021, Additional EUR1 billion from the federal government to support the states in financing local public transport; (viii) 27 April 2021, The German Development and Resilience Plan (DARP), worth EUR25.6 billion, consists of 40 measures in six priority areas. They are in line with the goals of the Development and Resilience Facility (ARF) under the NextGenerationEU and address the challenges in the areas of climate policy and the energy transition, digitization of the economy and infrastructure, digitization of education, strengthening social participation, strengthening a pandemic-resilient health system, as well as modern management and dismantling of investment barriers; (ix) As of 6 July 2021, EUR709.6 million of the NextGenerationEU was allocated to European Agriculutural Fund for Rural Development.

(i) 5 May 2021, Under the EUR2 billion "Action Program Catching Up After Corona for Children and Young People", EUR1 billion is allocated to promoting early childhood education, with the following sub-initiatives: parenting courses, one-time children's leisure bonuses, family/holiday camps, and strengthening civic engagement. The other half of this measure is in item (vi) of Measure 05B5; (ii) As of 6 July 2021, EUR1,894 million of the NextGenerationEU was allocated to Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU). Measures are focused on supporting labor market resilience, jobs, SMEs, and low-income families, as well as setting future-proof foundations for the green and digital transitions and a sustainable socio-economic recovery.

As of 6 July 2021, All the funding of the NextGenerationEU allocated to (i) Recovery and Resilience Facility, (ii) European Agriculutural Fund for Rural Development, and (iii) Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU) is worth EUR28.2 billion. The total amount allocated to the four programs (out of seven) under NextGenerationEU is still unaccounted for.