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Germany: Federal subsidies are increasing sharply

The federal government is spending more and more money on subsidies.

Berlin - According to the Federal Ministry of Finance, direct financial aid from the government to companies and other recipients rose to 11.7 billion euros in 2020, after 8.3 billion euros in the previous year. That is an increase of more than 40 percent, as Der Spiegel reports. Originally planned for 2020 was 14.4 billion euros.

The reason for the increase was, among other things, measures with which the federal government is promoting electromobility, climate protection and broadband expansion. In addition to direct financial aid, the federal government also grants subsidies in the form of tax breaks. They made up 16.9 billion euros last year, 500 million euros more than in 2019. Not included are the temporary Covid aid and subsidies from the federal states.

If they were included, the subsidies would have more than doubled in a comparison of the two years.

Photo: imago/Schöning
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