Disparate approaches to the recouping of 2020 coronavirus emergency aid for freelancers, small business owners and the self-employed are being employed across Germany’s federal states, according to a survey conducted by the Redaktionsnetzwerk Deutschland (RND). The survey, compiled from responses from the economic ministries of 15 of Germany’s 16 states (Mecklenburg-Vorpommern did not provide data), reveals significant variations in how states are pursuing claims and the subsequent legal implications for recipients.
North Rhine-Westphalia, the most populous state, approved approximately 430,000 applications for emergency aid but is actively seeking full or partial repayment in around 230,000 cases. Similar practices are underway in Baden-Württemberg (roughly 245,000 payments made, with 117,000 repayment notices issued) and Schleswig-Holstein (approximately 56,000 payments, with some 35,000 currently being reclaimed). Conversely, Berlin’s efforts are considerably more lenient, pursuing just 15,470 repayment demands from over 213,000 approved payments. Sachsen-Anhalt and Saarland also report significantly lower numbers of reclaimations proportional to the assistance provided.
The sums involved are generally below €10,000 and authorities often deem that recipients have failed to adequately demonstrate the “liquidity distress” that justified the initial aid. While most states offer the opportunity to lodge an objection, triggering a review by the authority, some, including Bavaria, Sachsen-Anhalt and North Rhine-Westphalia, restrict recipients to filing a lawsuit in administrative court.
The success rates of these legal challenges also vary remarkably. In North Rhine-Westphalia, roughly 900 out of approximately 1,200 lawsuits related to emergency aid have been decided in favor of the claimants. In contrast, Bavaria has seen no successful challenges in the 516 cases that have been concluded thus far. However, Bavaria has also granted full or partial waivers in around 16,700 individual cases after review.
Cultural Affairs Minister Wolfram Weimer voiced concern over the situation, stating the importance of maintaining support for artists facing precarious economic circumstances. He acknowledged the responsibility of the federal economy ministry but advocated for cultural investment not to be counterbalanced by social concerns.
Janine Wissler, parliamentary vice-chair of the Left party, criticized the inconsistencies among the states as unjust, but further highlighted concerns surrounding large corporations allegedly benefiting from coronavirus aid while simultaneously distributing dividends and bonuses. She suggests the distribution of Kurzarbeitergeld (short-time work benefits) to firms that seemingly did not require assistance is a critical issue.