The Law to mitigate the consequences of the COVID 19 pandemic in civil, insolvency and criminal procedure law ("Gesetz zur Abmilderung der Folgen der COVID-19-Pandemie im Zivil-, Insolvenz- und Strafverfahrensrecht") was adopted by the German Bundestag on 25 March and approved by the Bundesrat representing the federal states on 27 March 2020. With its draft published by the German Federal government on 23 March 2020, the implementation was probably the fastest legislative procedure of such scope in the history of the Federal Republic.
In response to the outbreak of COVID-19, the German federal and state governments have implemented several executive and legislative measures to support affected businesses in Germany. This newsletter provides an overview of the key measures which may be relevant to Japanese companies with operations in Germany. Naturally, there will be many questions and issues to be clarified, and we will be happy to use all our experience and local contacts to help answer and overcome them.
Overview
Gesetz zur Abmilderung der Folgen der COVID-19 Pandemie
Our lives have changed completely in a few days due to COVID-19 and the world’s response to it. Governments react with a multitude of regulations, which have a considerable influence on the economy especially for the Retail & Consumer sector. This affects very different areas of law. Our sector approach consists, among other things, of showing you the legal consequences in the most diverse legal areas and our contact persons for this.
Handlungsbedarf und Handlungsoptionen
Self-application
Basic principle
Die Möglichkeiten durch das Gesetz zur Abmilderung der Folgen der COVID-19-Pandemie im Zivil-, Insolvenz- und Strafverfahrensrecht für Startups.
In order to protect German companies and their employees against the economic impact of the coronavirus, the German government has resolved on 23 March 2020 on a comprehensive set of measures. It is the largest government support programme which was ever enacted in Germany. These measures even go beyond the support organized by the government during the financial crisis. The goal of this “protective shield” is to provide businesses with sufficient liquidity to help them make it through the crisis.
The German parliament has adopted new legislation yesterday which is expected to become law soon. This briefing summarises the changes made, as well as a number of other legal aspects we find noteworthy in current times with regard to the real estate sector.
On 25 March 2020, the German Parliament (Bundestag) passed, in connection with the COVID-19 pandemic, significant changes in law (the “New Law”). These changes are subject to approval by the Federal Council (Bundesrat), which, however, is expected to be granted soon.
Due to the COVID 19 pandemic (hereafter, “COVID-19”), the closure of numerous shops and other businesses has been ordered by the authorities. Other shops and businesses are suffering losses in sales, some of them severe. As a result, many tenants will find themselves in an economic predicament and will be unable to pay their rent, at least temporarily. The question has therefore already been raised several times as to whether tenants are still obliged to pay rent during the current situation.