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Germany urged to hand out 500-euro shopping vouchers to kickstart economy

Germany urged to hand out 500-euro shopping vouchers to kickstart economy

Germany urged to hand out 500-euro shopping vouchers to kickstart economy

Germany’s retail sector is calling for shopping vouchers worth 500 euros to be given to all citizens, in an attmept to stimulate the economy.

Additional income for citizens

The German Trade Association (HDE) has called for vouchers to be given to residents of Germany to encourage people to get shopping again once the coronavirus crisis has ended. The hope is that, by acting as an additional income, the shopping vouchers would give people the confidence to spend and thus help to stimulate the economy. "An additional income of 500 euros per inhabitant would mean a demand impulse of up to 40 billion euros," said the managing director of the German Trade Association (HDE), Stefan Genth.

Genth suggested giving these vouchers to consumers when coronavirus in Germany has been brought back under control. Genth explained that citizens and companies would need a “quick and clear signal of departure” from the pandemic and the shopping vouchers could be a way to achieve this.

Paying the people of Germany

Genth also stated that the money should not be offset against other transfers. He suggested “a multi-pronged procedure” for the payout, which would see employees receive the money through their company payroll. In this way, minors can be recorded through the number of child allowances. "The tax offices would then make a reimbursement to the employer," said Genth.

Pensioners could receive payment through their pension fund, with recipients being contactable through the employment offices. Freelancers, entrepreneurs and those who are self-employed could receive their payment through a similar process.

Genth wants the vouchers to be given out as a “clear signal for a new beginning after the corona crisis” and, as such, has rejected the idea of only giving out vouchers to those who need it most. According to Genth, such a process would simply be too bureaucratic.

William Nehra

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William Nehra

William studied a masters in Classics at the University of Amsterdam. He is a big fan of Ancient History and football, particularly his beloved Watford FC.

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