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Corona Emergency Aid in Germany: Dispute over Repayment

Summary by Deutsche Welle
With 13.6 billion euros, the federal and state governments supported small entrepreneurs, self-employed and freelancers after the first Corona lockdown in 2020. Now they are supposed to pay back the aid. Many defend themselves.

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With 13.6 billion euros, the federal and state governments supported small entrepreneurs, self-employed and freelancers after the first Corona lockdown in 2020. Now they are supposed to pay back the aid. Many defend themselves.

·Bonn, Germany
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The SPD parliamentary group in the Baden-Württemberg state parliament sharply criticized the Baden-Württemberg state government following a court ruling on the repayment of coronavirus aid. Economic policy spokesperson Boris Weirauch announced on Thursday that the government was paying the price for its mismanagement in repaying the aid funds. Weirauch expressed his conviction that businesses in Baden-Württemberg had suffered severe damage as a …

In the case of the repayment of Corona emergency aid in Saxony there is again trouble: The new regulations of September do not apply to cases that have already been legally concluded. Bitter for those who have already paid back.

The country requires tens of thousands of companies to repay Corona emergency aid. Many have sued - now the administrative court has decided the first cases.

On 8 October 2025, the Verwaltungsgerichtshof (VGH) Baden-Württemberg abrogated five recovery orders for the Corona emergency aid and thus confirmed the legal opinion of the law firm Dr. Stoll & Sauer. The decisions also concern two proceedings of the law firm (Az. 14 K 2955/23, VG Karlsruhe and Az. 4 K 177/23, VG Stuttgart). The VGH thus clarified with its press release of 9 October 2025 that the mass recovery of the L-Bank to k

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Mittelstand Cafe broke the news in on Thursday, October 9, 2025.
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