The German Ministry of Finance estimates that the cost of Covid-19 will reach 1.446 trillion euros by the end of 2021. In response, Dietmar Bartsch, the parliamentary leader of the Left Party, is calling for billionaires and multimillionaires to help finance the crisis. The costs include healthcare expenses, economic aid and stimulus programs, the purchase of medical supplies, and international aid payments. The government expects higher social system costs and a decrease in tax revenue due to Covid-19, despite record-high private wealth in the second quarter of 2020.
The Ministry of Finance’s estimate is an internal calculation used to plan next year’s budget and is subject to change depending on the pandemic’s progression and political decisions. The current year’s crisis costs are estimated to be 400.4 billion euros, with an additional 89 billion euros for the federal states and municipalities. Social security funds will incur an additional 26.5 billion euros in costs this year, and the Ministry of Finance predicts an additional burden of 74 billion euros for the federal budget next year. The total cost of Covid-19 measures is estimated to be 619.9 billion euros, with additional state guarantees of 756.5 billion euros for the federal government and 69.8 billion euros for the states.
Bartsch argues that it is essential to find a way to finance the crisis without cutting social welfare and infrastructure spending. He believes that billionaires and multimillionaires should be called upon to contribute to the effort, as the German constitution requires. Without their help, the burden will fall on the most vulnerable members of society. The Ministry of Finance’s estimate underscores the need for a comprehensive and sustainable solution to the Covid-19 crisis.
