Thousands of German Companies Face Corona Aid Revocation Amid Rising Economic Fears

In Sachsen-Anhalt, approximately 10,000 companies are at risk of losing the Corona emergency aid they received during the pandemic due to non-response to the Investitionsbank's inquiries. Initially, around 17,000 companies failed to reply by the end of September, despite nearly 37,000 applications for the aid having been approved, totaling about 287.3 million euros. Although recipients have repaid around 28 million euros so far, none have yet been issued formal revocation notices. The Investitionsbank has extended a final chance for response and introduced more lenient repayment conditions, allowing companies to pay back the aid in installments over up to 72 months without interest if they respond accordingly.

At the same time, economic uncertainty continues to loom over German businesses. A recent survey by the Ifo Institute reveals that 8.1% of companies nationwide fear for their survival, up from 7.3% in October 2024. Klaus Wohlrabe, head of the Ifo survey, warned of high corporate bankruptcy rates expected in the coming months as a result of this growing anxiety.

The intersection of aid repayment challenges and rising existential fears highlights the fragile state of many German companies still grappling with the economic fallout of the pandemic. While support mechanisms like eased repayment terms offer some relief, the risk of aid revocation and increasing insolvency concerns underline ongoing vulnerabilities within the business sector in Germany.