German corona aid to be extended
According to the German Music Council, almost all coronavirus aid programs for culture in Germany are oversubscribed. It is calling for the funding to be increased and extended and for the aid to be adapted and made less bureaucratic.
According to the German Music Council, the renewed lockdown since the beginning of November 2020 has led to a standstill in the music industry, partly due to the de facto ban on work for numerous players in the music sector. After the bridging aid announced by the federal government initially excluded large parts of the professional music industry and solo freelancers in particular due to its strict application regulations, the federal government has now announced improvements.
This includes doubling the flat-rate operating allowance for solo freelancers as part of the new start aid to 50% of their 2019 reference turnover, as the German Music Council has also called for. However, the complex application process and delays in payment remain problematic. Of the estimated €15 billion in economic aid, only €1.2 billion has been paid out so far.
The criteria for Bridging Aid II were changed retroactively to the detriment of many companies, as EU state aid law had not been sufficiently taken into account in the original version. There may also be subsequent corrections for large companies for the November and December aid. These retroactive changes to the application regulations mean that some companies are threatened with substantial repayments.
