Across Germany, the approach to recovering COVID-era emergency aid payments disbursed in 2020 to freelancers, small business owners and self-employed individuals varies significantly by state, according to a survey by the Redaktionsnetzwerk Deutschland (RND). The differences affect both the rate of recovery and the legal avenues available to those facing repayment demands.
Nordrhein-Westfalen, the most populous state, approved approximately 430,000 applications for emergency aid, with roughly 230,000 cases resulting in full or partial repayment demands. Similar patterns are seen in Baden-Württemberg (approximately 245,000 approved payments and 117,000 recovery notices) and Schleswig-Holstein (around 56,000 approved applications, with nearly 35,000 subject to recovery orders).
In contrast, Berlin has issued recovery orders for only 15,470 of the approximately 213,000 approved applications. Sachsen-Anhalt (roughly 37,000 approvals, 1,200 recoveries) and Saarland (17,505 approvals, 240 recoveries) exhibit even lower recovery rates.
The amounts in question, predominantly below €10,000, are generally being reclaimed due to authorities’ inability to confirm the existence of the so-called liquidity crisis during those three months. While most states offer an opportunity to appeal the repayment demand and trigger a re-evaluation by the authority, Bavaria, Sachsen-Anhalt and Nordrhein-Westfalen are limited to legal action in administrative courts.
The success rate of these legal challenges is also uneven. Of approximately 1,200 court cases related to the Nordrhein-Westfalen emergency aid program, around 900 were decided in favor of the claimants. In Bavaria, however, none of the 516 completed cases have been successful. The Free State has, however, been able to grant full or partial waivers in approximately 16,700 cases following individual assessments.
Culture Minister Wolfram Weimer emphasized the importance of supporting artists facing precarious financial circumstances, stating that investment in culture should not be played against social concerns.
Janine Wissler, parliamentary group vice-chair of the Left party, criticized the significant discrepancies across states, arguing that the situation is compounded by the billions of euros allegedly diverted from COVID relief by large corporations, including companies that received short-time work benefits while simultaneously paying dividends and bonuses.