German Finance Minister Olaf Scholz is working on an aid package worth 57 billion euros ($61.65 billion) to help municipalities cope with plunging tax revenues caused by the coronavirus crisis, a ministry document showed on Saturday.
“THIS PROTECTIVE SHIELD WILL ENABLE MUNICIPALITIES TO DO THEIR JOB BETTER”
Europe’s largest economy is facing its deepest recession since the Second World War, even as a lockdown to fight the virus is gradually eased. The drop in business activity has hit tax revenues and left a hole in municipal finances.
Scholz’s aid package aims to help cities and towns stabilise their finances. The plan also contemplates extra relief for some heavily indebted municipalities.
“This protective shield should not only bring cities and municipalities through the current difficult situation, but also enable them to do their job even better,” Scholz was quoted as saying in the strategy paper.