The corona virus has far-reaching effects on the German economy. The farmers worry about their harvest, so thousands of seasonal workers are flown in – now there is harsh criticism.
- The Corona virus * is badly affecting the economy in Germany. The exchanges * are in the basement.
- Many companies like that Travel company * TUI, are on Loans and State aid * instructed to survive.
- Here you will find our guide to reporting and the Corona News from Germany. You can also find current numbers of cases in Bavaria as a map. The following recommendations for corona protective measures are currently available.
- Earlier reports on the impact of corona on the German economy can be found here.
April 11 update: The first eagerly awaited by many farmers Harvest workers from Romania arrived in Germany last week – but there could be a legal sequel to the situation at one of the departure airports.
Had on Thursday Pictures of around 1800 seasonal workerswho were waiting shoulder to shoulder in a crowded parking lot at the airport in Cluj, sparked outrage on social networks. Up to 1,800 people had been waiting at the airport eight hours before the first aircraft took off. Romanian prosecutors are now investigating the alleged violation of the Disease Act initiated. Prime minister Ludovic Orban demanded the dismissal of the airport director at a cabinet meeting.
Federal Minister of the Interior Horst Seehofer (CSU) and Minister of Agriculture Julia Klöckner (CDU) had agreed 80,000 foreign seasonal workers, mainly for the Asparagus harvest are needed to fly to Germany under strict conditions.
Thousands of jobs at risk: Dark clouds over a traditional German brand
Update 19:22: Corona, meanwhile, doesn’t seem to affect the whole economy. The German defense industry defies the economic crisis caused by the coronavirus pandemic and continues to do good business.
Update, 5:27 p.m .: The works council chief of VW truck subsidiary Traton has clearly denied statements by Traton boss Andreas Renschler about ongoing discussions on the “fundamental realignment” of the Munich truck manufacturer MAN. “The workforce can rely on us. We are not currently sitting at the table, ”said Saki Stimoniaris, Works council chairman of MAN and Traton and member of the VW supervisory board. The MAN Truck & Bus SE belongs to Traton with Scania and is planning a major job cuts. MAN employs around 36,000 people worldwide, including 21,000 in Bavaria.
Stimoniaris said contrary to what the Traton board said, there were no negotiations or talks with the MAN board for a restructuring. It was only when the general conditions in the Volkswagen Group were in place that “the general works council will be ready to start talks on restructuring,” he announced.
Renschler in turn had the Business week said MAN must become significantly more profitable. The employee representatives also saw the need for a fundamental realignment. “The talks are delayed somewhat by the crisis, but continue.” Stimoniaris replies: “We see responsibility for MAN. We have to take action. But this requires a framework of reliability. Volkswagen now has to take the helm. ”
In the wake of the corona pandemic, MAN ceased production at the end of March – around 13,000 employees in Germany are on short-time work. Renschler recently admitted that the crisis may cost additional jobs.
Financial aid because of Corona: German companies should ignite “Eco-Turbo”
Update, 3.45 p.m .: Should companies with environmentally harmful business models because of losses in the corona crisis financial support receive? The left-wing parliamentary group in the Bundestag calls for climate sinners in German business to be excluded from the planned stimulus from the federal government. According to the concern, low-cost airlines, coal-fired power plants and other fossil energy projects should not receive support, the paper said AFP was present and what was the first mirror reported. Such a business model is no longer feasible “in the coming low-carbon world”, the thesis is.
The position paper comes from the environmental working group in the left faction. The environmental and climate expert Lorenz Gösta Beutin referred to “fatal errors” that occurred in the Economic stimulus package after the global economic crisis 2008 were made. Back then, the package fueled “dirty growth” and was “a bitter setback for the environment and the climate,” said Beutin.
He cited the scrapping premium for cars as an example: “The scrapping premium, for example, ensured that Germany missed its climate targets in traffic until today.” The targeted corona stimulus packages would set the growth course for the next decade, said Beutin. “So you have to ignite an eco-turbo instead of becoming a climate protection brake.” The left therefore demand that the corona funds be given to one ecological use to tie.
Update, April 9, 10:45 a.m .: The Dax group Eon will ask its shareholders online for the annual general meeting. Because of the corona crisis, the meeting should take place in accordance with the recently created new rules of the stock corporation law without physical participation of the shareholders, as Eon announced. The new date is May 28th. The Annual General Meeting was originally scheduled for May 13. Due to the postponement, the dividend distribution to the shareholders is now being delayed. Eon has proposed a dividend of 46 cents per share for 2019.
Coronavirus: Lufthansa boss speaks of “greatest challenge in our history”
Update April 8, 10:14 p.m .: “In total we therefore lose one million euros of our liquidity reserve every hour – Day and night, week after week and probably also month after month. ”This shocking balance sheet shared Lufthansa boss Carsten Spohr the employees of the German airline in a video message. The airline currently carries fewer than 3,000 passengers instead of 350,000 a day.
For the group that means Pandemic “the greatest challenge in our history”said Spohr. Lufthansa is “in the fight” for its future line-up. Lufthansa could face the crisis with financial reserves of more than four billion euros, but the group recorded only one “Fraction of revenue”. It is therefore foreseeable that the company will Only survive the crisis with state support will. Lufthansa is currently negotiating state aid and Spohr was optimistic that the talks will end positively.
Coronavirus: Hamster purchases seem to be declining
Of the activitieswith which theCompany wants to cut costsare according to Spohr 7000 employees affected. 1400 of them are with the daughter Germanwings, which ceases operations. Talks have already been held with the employee representatives to offer as many employees as possible an alternative job in the group. To do this, however, new employment models, such as part-time work, are essential.
Update April 8, 6.20 p.m .: Has the Forage finally an end? That puts at least one Communication from the Federal Statistical Office close from Wednesday. According to this, the sales figures for hygiene products and foodstuffs, which have recently been above average demand, went largely in the past week back, and sometimes clearly. So it was Sales of toilet paper at retail 29 percent below average the six months from August to January.
Corona virus impact on the economy: Toilet paper sales fluctuate
Still a week earlier, 46 percent more toilet paper had been sold than as a six-month average. Sales of soap fell after a plus of more than 330 percent in mid-March to a little more than double the usual amount. And also atFlour was significantly lower at 57 percent last week than the previous week (139 percent). According to the statisticians, sales of sugar and rice were only about ten percent above the average.
The By contrast, demand for disinfectants rose “After a brief slump” again, almost four times the usual value. In this connection, the statisticians pointed out that the fluctuations and short-term sales declines only partially reflect a slowly occurring saturation of demand. They could also be “due to a short-term offer in one product segment”.
How is the Corona crisis going on in Germany? Jens Spahn and the RKI are giving a corona update on Thursday. *
Corona virus and business: DHL wants to register short-time work for 4000 employees
Update April 8, 4.10 p.m .: The logistics companyDeutsche Post DHL wants to according to a media report Short-time work for 4000 employees Sign in. Affiliates in particular from the contract logistics division, including two companies that offer logistical services and first production steps for the car manufacturers Ford and Audi, reported the “Wirtschaftswoche” on Wednesday, citing trade union circles. Short-time work is also to be introduced in the business with express deliveries in Germany and in the forwarding division.
The Groupsuffers from measures to curb the coronavirus pandemic and the bad order situation with many customers. The management board has already withdrawn its profit target for 2020. However, the group is seeing increasing volumes in the parcel business in Germany. The majority of the approximately 190,000 employees in Germany work in the mail and parcel sector.
When asked by AFP, a spokeswoman for the group said that the “first priority” was to employ employees in other business areas where possible. “Only then will we consider short-time work to a limited extent in some business areas.”
The Verdi union criticized that the group did not want to increase short-time benefits. Verdi asked the board to do so, said deputy chairwoman Andrea Kocsis of the “Wirtschaftswoche”.
Corona virus / economy: Chemical and pharmaceutical industries suffer particularly from corona
Update from April 8, 3:08 p.m .: In the chemistry– and Pharmaceutical industry the number of Short-time workers rapid in the corona crisis. In April, almost 85,000 employees are expected to be on short-time work, according to a survey by the Federal Employers’ Association for Chemistry (BAVC) among almost 250 member companies. That areevery seventh employee or 14 percent in the industry with its 580,000 employees in Germany. In March, the proportion of people working short-time increased five-fold, according to the dpa paper on Wednesday.
TheCorona crisis affects the industry far more than the global financial and economic crisissaid BAVC President Kai Beckmann. At that time, around 50,000 employees in the chemical and pharmaceutical industries were on short-time work. Today, companies along the supply chains for the automotive industry such as paints, plastics, tires and fibers are most affected.
Update from April 8, 11:11 p.m .: After two strong trading days the recovery on the German stock market has ended for the time being. The finance ministers of the European Union met on Wednesday not agree on a multi-billion dollar corona aid package. Instead, they adjourned to Thursday. This put pressure on the prices: The Dax lost 1.3 percent to 10,222 points in the morning. The leading German index had recovered by almost nine percent in the past two days.
Effects of Corona on the economy: Greens call for improvements in the voucher scheme
Update from April 8, 11:28 a.m .: The Greens in the Bundestag call for improvements to the planned Voucher scheme for consumers who because of the corona
crisis Can not use tickets or subscriptions. “In the short term, the government is putting the greater risk of ticket reimbursement on consumers’ feet,” said the Greens Group’s spokeswoman for consumer protection, Katharina Willkomm, the German Press Agency.
The cabinet previously had one regulation decided, according to which organizers of music, cultural or sporting events and operators of leisure facilities such as museums, swimming pools or sports studios provide their customers Issue vouchers can for benefits that cannot be used due to the corona pandemic. This should help prevent bankruptcies. “Organizers and operators are faced with a large number of reclaims and are increasingly facing liquidity bottlenecks,” warned Justice Minister Christine Lambrecht (SPD).
BMW starts manufacturing respiratory masks
Update from April 8, 10:51 a.m .: The car maker too BMW wants to produce in the Corona crisis Respirators enter. “We are actively addressing global bottlenecks. Production plants are already on their way to us. We will soon be able to produce several hundred thousand masks a day, ”said BMW boss Oliver Zipse in Munich on Wednesday. The for the Production necessary machines would be delivered in the coming weeks.
The car maker also donated a million pairs of medical gloves and gloves to the Free State of Bavaria for the fight against the corona virus50,000 FFP2 respirators. “In this emergency, rapid and coordinated assistance is of the utmost importance,” said Zipse. He announced that BMW would donate a million respirators again in the next two weeks.
Economic researchers: Germany can cope with recession
Update from April 8, 8:44 a.m .: From the perspective of leading economic researchers, the corona crisis is leading to a severe recession – But Germany is well preparedto get through this. Ifo economic chief Timo Wollmershäuser said on Wednesday that Germany had good prerequisites to cope with the economic slump and in the medium term again that economic level to achieve that would have resulted without the crisis. The favorable financial situation enables the state to take extensive measures to mitigate the short-term negative consequences for companies and households.
According to the forecast of the leading economic research institutes, German economic output will be this yearshrink by 4.2 percent. This would be the worst recession since the financial and economic crisis over ten years ago. The institutes predict a recovery and growth of 5.8 percent for the coming year.
Deutsche Post sees no need for state aid
Update from April 8, 8.15 a.m .: Despite theCorona crisis no need for government grants. “We are in a very stable situation,” said Post boss Frank Appel in a conference call with journalists on Wednesday. The group is very resilient and very well positioned, especially with regard to the balance sheet. Therefore there is in the company no discussions about possible government support.
While Swiss Post has recently seen noticeable declines in the express and freight business, supply chain logistics and advertising mail, the parcel business has grown to a level normally seen only before Christmas, Appel said. For this reason, Swiss Post now wants to use employees from other areas in its parcel business. Accordingly, new hires are also planned.
Vonovia housing group: Thousands of tenants fear money problems
News from April 8, 5.13 a.m .: In the Corona crisis, thousands of tenants in Germany’s largest housing group Vonovia asked for concessions. As of the end of last weekaround 3,000 tenants contacted the company with the fear that they could no longer afford their apartment. Vonovia had already written to all tenants in March “that they don’t have to worry if they are temporarily unable to fully pay rents,” said CEO Rolf Buch of the Süddeutsche Zeitung (Wednesday).
You want in such cases together a solution Find. “Under no circumstances will we give notice to tenants who have had problems with Corona,” said Buch. He also excluded rent increases in current contracts, as long as the Corona crisis be acute. “Even if we now complete modernizations, we will not increase rents until September for the time being.” Although that will cost the group money, the annual forecast is still being adhered to.
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List of rubric lists: © dpa / Raul Stef