Even six years after the end of the emergency Corona aid programs, the Federal government and the states have yet to sufficiently demonstrate, according to the Federal Court of Audit (Bundesrechnungshof), whether the billions of euros provided were used properly and economically. Citing a report addressed to the Bundestag Budget Committee, the magazine Politico reported that the auditors have identified additional repayment potential amounting to almost €1.5 billion.
The Federal government disbursed around €13.9 billion in emergency Corona aid in the spring of 2020 to small businesses, sole proprietors, and freelancers, with roughly 1.74 million applications approved. Because the funding period was set at three months, but actual business closures only lasted about six weeks, many instances of “overcompensation” occurred. According to the report, the Federal Ministry for Economic Affairs has estimated since 2022 that approximately 30 percent of the granted emergency aid exceeded the actual required amount.
The purpose of these funds was to bridge acute liquidity shortfalls during the pandemic period. However, the overall execution and implementation of the program fell entirely under the responsibility of the individual states.
