Governments and central banks worldwide are deploying hundreds of billions to support their economies during the corona crisis. "This is the bazooka," German Finance Minister Olaf Scholz said last week.
In the largest economy in the world, US President Donald Trump wants to make no less than 1 trillion dollars, converted 920 billion euros, available. For example, there is a plan to give every American cash in the coming weeks. Trump himself thought of $ 1,000 for some people.
American airlines are also in need of financial support. The airlines believe they need at least $ 50 billion in loans and support to stay in the air. The sector has seen the number of passengers evaporate due to the further spread of the corona virus.
Germany has deliberately not quoted an exact amount due to the uncertainty of the situation, but Finance Minister Olaf Scholz previously said that the government will do everything to counter a serious disturbance of the economy. The development bank is capable of issuing at least EUR 500 billion in guarantees for loans.
No company is bankrupt
In addition, huge packages have been announced in Europe, including in the United Kingdom and Spain. For example, the UK wants to use £ 330 billion (€ 357 billion) to prevent companies from falling over. Another € 200 billion is available in Spain.
The European Central Bank (ECB) announced on Wednesday evening for an additional EUR 750 billion to mainly be issued to government bonds. This should ensure that the turmoil that previously arose in the bond markets is countered.
France is pumping about € 45 billion into the economy to help companies and workers. As it stands, production there will drop by 1 percent this year. The government has promised that no company will fall over due to the spread of the virus. In Italy, the worst hit country in Europe, 25 billion has been designated to help the economy through the crisis.
The Dutch cabinet also allocates billions
The Dutch cabinet announced on Tuesday evening that it would allocate 10 to 20 billion euros to keep companies and the self-employed afloat. For example, entrepreneurs who expect at least 20 percent less turnover can apply for a reduction in working hours at the UWV. There is also 4,000 euros for every entrepreneur who has seen the turnover (almost) completely evaporate due to the corona outbreak.
In some countries, governments are still working on a package of measures. For example, the ruling party in Japan is calling for tax cuts and a stimulus package of up to 30 trillion yen (260 billion euros). And also in China and South Korea, countries where the outbreak seems more under control, almost 30 billion euros are converted.