Wednesday, July 17
Give the money back? Berlin to demand Covid aid repayments until 2030
During the pandemic, as lockdown hit and many Berliners found themselves without any source of income, the city acted decisively, authorising the Investitionsbank Berlin (IBB) to grant aid to self-employed residents. That money was paid out fast and served as a crucial lifeline to thousands. But after the bailout comes the bill – and the city is now demanding their money back in an audit and settlement procedure that is expected to continue at least until 2030.
But does this process even make sense? Remarkably, the cost of pursuing these cases is very likely to cost the city significantly more than it can hope to claim back. The IBB have made repayment demands for around 25,700 cases and expect to claim €200 million back in total – but it has spent €96 million chasing up these debts, and it is expected to pay another €108 million over just the next three years.
For the city’s freelancers, the costs of repayment or hiring a tax advisor to fight their case can be overwhelming.
