Financial expert warns: Corona aid will burden future generations until 2058 - Ifo Institute praises liquidity aid, criticizes VAT reduction.

Financial expert warns: Corona aid will burden future generations until 2058 - Ifo Institute praises liquidity aid, criticizes VAT reduction.

According to a report by www.sueddeutsche.de, the economic research institute Ifo has found that most Corona aid has achieved its intended goal. In particular, the liquidity support for companies with business bans and the expanded short-time working rules were described as appropriate. However, the reduction in the VAT rate and the loans to already struggling companies were viewed critically because they were not specifically aimed at companies affected by Corona. Financing these measures will also place a heavy burden on future generations, as the repayment of the Corona loans runs until 2058.

This assessment by the Ifo Institute has significant implications for the market and the financial industry. The targeted liquidity support and expanded short-time working rules have helped companies make ends meet in difficult times. However, the critical assessment of the VAT reduction and the loans to struggling companies shows that it will be important in the future to make aid more targeted and efficient. The long-term burden on future generations will also have a significant impact on financial policy decisions in the coming years.

Given these findings, it is critical for financial experts and policymakers to consider the impact of relief measures going forward and to better target future relief packages to reduce long-term burden and ensure market stability.