The End of “Black Zero”: The Second Wave of Anti-Crisis Measures in Germany
The End of “Black Zero”: The Second Wave of Anti-Crisis Measures in Germany

Author(s): Sebastian Płóciennik
Subject(s): National Economy, Governance, Economic policy, Economic development, Public Finances, Fiscal Politics / Budgeting
Published by: PISM Polski Instytut Spraw Międzynarodowych
Keywords: Germany; coronavirus pandemic; anti-crisis measures; intervention tools; economic policy; fiscal policy; public finances; eurozone; financial measures;
Summary/Abstract: The prospect of dire economic repercussions from the coronavirus pandemic has prompted the German government to expand its intervention tools. The latest package puts the emphasis on helping the smallest companies and self-employed, offering more loan guarantees, as well as the possibility of temporary state purchases of shares in companies. The crisis is a challenge for fiscal policy—it will lead to a large deficit in public finances and to rising pressure on the German government to accept joint financial measures in the eurozone.

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