Michael Hüther on the economy and fairer aid funds in the Corona crisis
“The reimbursement of up to 75 percent of the previous year’s turnover has the consequence, due to very different cost structures – strongly fluctuating fixed cost shares – in the currently affected sectors, that structural interventions are made in the competitive conditions. A reimbursement of the fixed costs plus a risk surcharge of 20 percent, depending on the degree of utilization, so that a maximum of 120 percent of the fixed costs would be reimbursed in the event of a complete closure of the business, would be better in terms of the three criteria “simple, accurate, incentive-oriented”. This instrument would be usable in the future, similar to the short-time work regulation.”
– Michael Hüther, Director of the Institute of the German Economy, in “Ethical Dilemma of the Pandemic” (The Corona crisis raises difficult questions of morality and justice. The economy can help solve them), guest commentary in Handelsblatt, Tuesday, December 15, 2020, No. 243
