The next few months will tell the tale of how much impact Covid19 will have on the economy.
The return to offices (and schools) after summer will reveal the remaining strength of the virus, and the effectiveness of our containment measures. The moratoria on bankruptcy and loan repayment will reveal the true condition of the business network, as will the shift from the Antivirus employment support to a promised Kurzarbeit program.
The strength of our recovery will be assisted by the increased spending power provided by the proposed abolition of the super gross tax base calculation. Reform and digitization of the construction permit process, immigration, and public research spending rules will stimulate investment and reduce the time between idea and real life creation of jobs and revenue. What will determine the speed and strength of our recovery, though, will be how effectively we use the EU Recovery funds.