DStarting in mid-July, the extent of flood damage is becoming clearer and clearer—and how to fund reconstruction. On Wednesday, the Federal Cabinet hopes to pass a bill to pay public assistance to victims as soon as possible. According to the draft, its latest version was provided to FAZ on Tuesday, and a national solidarity fund called “Development Aid in 2021” will be established as a federal fund. It was awarded 30 billion euros. According to the document, more than half of it, about 16 billion, should have come from this year’s federal budget.
This amount consists of 2 billion euros, which is necessary for the development of federal infrastructure, such as damaged roads or railway lines. By 2021, Berlin will have another 14 billion for the reconstruction of the federal states. The remaining 14 billion euros required from next year are also provided by the federal government, but the money officially comes from the federal states: they will be exempted from some sales tax rights between 2021 and 2050 for a period of 30 years.
Everyone deserves state aid
This Bundestag I want to discuss the bill at a special meeting on Wednesday. The confirmed FAZ members then plan to pass the amendment at the special meeting already planned on September 7. Then submit it to the Federal Council. “Everything should end before the federal election,” heard in Berlin on Tuesday.
Government groups have provided seizure protection for the wording assistance of the planned special assets law, so that even companies and families with heavy debts can get assistance immediately. The debtor does not need to file a long-term application to the enforcement court, but should submit proof, such as a flood assistance approval notice, to the bank holding the seizure account.
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The Telecommunications Law hopes to change the alliance in order to better carry out disaster warnings in the future. Cellular network operators are obliged to take technical and organizational precautions “in order to send an immediate warning at any time.” It should be possible to reach mobile phone users via CB radio in the future. People also want to make it easier to set up mobile accommodation, schools, kindergartens or city halls. In areas where it is necessary to arm itself against dangerous natural events, structural changes in the railway and highway network should also be possible without the need for planning approval and planning approval procedures.
In addition to the law, so-called development assistance regulations and administrative agreements need to be signed with the federal states. These documents are still being voted on. They are based on models after the 2013 floods; at the time, these decrees were available about ten days after the Cabinet made a decision. According to the first draft, the damaged homeowner and company should be paid. For the latter, half a year can offset 80% of the profit loss. Individuals who previously planned to rebuild destroyed houses will receive 80% of the cost from the state, and 100% in difficult situations. The amount of assistance shall be based on the amount paid by the basic insurance.
New information from financial regulators BaFin According to reports in charge of insurance, even half of the injured owners and companies did not purchase such natural disaster insurance. Frank Grund, executive director of BaFin, told BaFin-Journal, “This is not caused by an insurance company, as one might suspect.” In flood-prone areas, there are fewer buildings that can be insured than average, and the charges are higher. However, “considering their insurance coverage” depends on the customer. Traders asked to check whether their business interruption insurance also applies to such damages.
BaFin asked 150 insurance companies and 28 reinsurance companies about the consequences of the flood. Major insurance companies expect losses of up to 5.7 billion euros, of which 4 billion euros are reinsured. Despite the high level of pollution, there are reasons to worry about the stability of insurance companies. There are regional differences in the extent of their impact. “However, as can be seen from the current reports, whether it is a property insurance company or a reinsurance company, the company’s continued existence is not threatened.”
