Government outlines additional financial assistance strategy
In the wake of a lockdown extension, the German Grand Coalition is addressing the specific needs of industries that have been hit hard, such as hotels, motorway service stations, and restaurants. The coalition is prioritising these sectors for additional aid, aiming to ensure that they receive the necessary support during the extended lockdown.
Federal Finance Minister Olaf Scholz (SPD) and economic counterpart Peter Altmaier (CDU) are considering improvements to Bridging Aid III, the scheme that was initially introduced in July 2020 to provide non-repayable bridging funds for medium-sized companies affected by the pandemic. The aid amounts depended on revenue losses and the number of employees, and applications had to be submitted via tax advisors or auditors to prevent misuse.
For sectors hit by lockdowns, an "umbrella" scheme called Novemberhilfe with a budget of €30 billion was implemented for businesses, the self-employed, and institutions forced to close. This was followed by further support schemes continuing into early 2021 and requiring professional intermediaries for applications.
While the coalition's focus has primarily been on medium-sized companies, recent developments suggest an expansion of beneficiaries for retail, freelancers, and large companies. However, no explicit mention of specific improvements to Bridging Aid III in 2025 or a direct link to a current or recent lockdown extension was found in the available search results.
The new aid measures are designed to overcome bureaucratic hurdles and constantly changing application conditions that have prevented some businesses from receiving support so far. For instance, under Scholz's proposal, unsold seasonal goods in the retail sector can be fully written off as fixed costs. Additionally, it is planned to double the deductions for the November and December aid from 50,000 to 100,000 euros.
This primarily benefits large fashion chains and smaller boutiques unable to sell winter merchandise due to the long lockdown. Goods up to 50% can be accounted for as fixed costs in general, a move that will also benefit large hotel chains, motorway service station operators, and restaurant chains, the main targets for the new aid measures.
In summary, while Germany historically provided and adapted robust aid schemes to bridge pandemic-induced losses—such as the Bridging Aid programs, Novemberhilfe, and sectoral extensions—no detailed information about new improvements or expansions to Bridging Aid III or beneficiary broadening in 2025 lockdown extensions was found in the available search results. For authoritative and detailed updates, official German government or Economic Ministry releases after August 2025 would be the best source.
The finance business is considering improvements to Bridging Aid III, a scheme aimed at providing non-repayable funds to medium-sized companies impacted by the pandemic. This scheme targets businesses, the self-employed, and institutions in sectors hit hard by lockdowns, such as hotels, motorway service stations, and restaurants.
