The German Finance Ministry introduced a € 57 billion ($ 61.65 billion) aid package to help municipal administrations cope with the sharp drop in tax revenue due to the emerging Corona virus crisis. According to Reuters, Schultz's aid package to help cities and towns aims to stabilize their financial situation and also includes additional aid for some municipalities with huge debts. The largest economy in Europe is experiencing the worst recession since the Second World War even though the general isolation measures imposed to combat the disease have gradually started to ease.
The decline in economic activities has caused a sharp drop in tax revenues, leaving a gap in municipal financing.
A document from the German Finance Ministry quoted Minister Olaf Scholz as saying this protective shield will help the municipalities to overcome the current difficult situation and even make them perform their tasks better. The document shows that the federal government wants the 16 state states to bear half of the costs and that parliament is supposed to pass the plan before the end of this year. >
