German Law Update for the End of the Year in 2020!
The COVID-19 pandemic in 2020 taught the planet yet another lesson about life’s unpredictability. — nation dealt with the pandemic’s problems in its own unique way. The German government rapidly unlocked vast financial capital to alleviate any immediate economic harm, following its usual technocratic and sober approach. It advocated for a further loosening of the purse strings at EU level, as well as legislative acts to better manage the instability in the most affected industries for the time being. Germany is now left questioning if it was always wise in the spring or just fortunate after being hit by a second wave of the pandemic in an unexpectedly hard way. The response to this question will be revealed in the year 2021. Addhunters
The pandemic’s devastation isn’t over; it’s just getting underway. On a more optimistic note, we have seen an extraordinary shift toward more effective communication methods through the use of digital media and technology in general. For example, to ease the annual reporting season under lock-down conditions, long-overdue reforms to the handling of annual shareholder meetings of German joint stock companies were introduced within weeks. By offering short-term job allowances to compensate for wage losses due to temporary reductions in working hours, the German scheme assisted employers in retaining their highly skilled workforce in the hopes of a swift recovery, mitigating immediate distress for those affected by the restrictions. A swift mechanism of amending legislation covering issues ranging from the suspension of rent and interest payments to the temporary relaxation of insolvency filing obligations, accompanied by a well-coordinated communication policy, contributed to most Germans’ sense of being well-governed thus far.
The year 2021 will be new, and there will undoubtedly be greater challenges ahead. Rather than throwing hundreds of billions of Euros at the issue, German politicians would have to justify to the public who will foot the bill for all of the major steps taken. The insufficient agreements reached with the twenty-seven European Union member states that will remain after Brexit in order to stabilize the economies of the poorest member states will necessitate careful implementation and oversight. To date, optimism has rested on a series of spur-of-the-moment decisions made in the face of an impending European crisis, with the belief that it will all lead to a more aligned and integrated European Union. Indeed, this is a very promising scenario.
Apart from the emergency measures triggered by the COVID-19 pandemic, the EU and Germany have set and begun to implement an ambitious agenda in terms of international trade regulation (by tightening rules on foreign direct investments), antitrust laws (to address market dominance in the digital age), and consumer protection (by introducing collusion clauses).
Finally, Angela Merkel’s tenure will come to an end in the fall of 2021. She would have served as Germany’s longest-serving Chancellor. This marks the end of a 16-year period that served Germany well while also assisting Europe in navigating difficult waters. She is expected to leave a temporary leadership void in Germany and Europe at an inopportune moment that will be difficult to fill in the short term.
Is this a serious crisis? No, it’s not true. Is it necessary to be concerned? Perhaps. Can we take action? Yes, indeed.
There are several things that each of us can do to turn the numerous obstacles that lie ahead into something new and possibly better. Here’s a list of our favorites: First and foremost, stay safe and take care of yourself and your loved ones. Second, instead of rushing to beat “long-term-trends” with hazy imaginative steps or short-sighted advocacy, make informed and deliberate decisions each day to address the challenges ahead. Third, stay connected to the rest of the world while remaining connected to your local community. This will help you avoid narrow-minded thinking and further fragmentation of the world. Learn where you can, push yourself where you can, and lend a helping hand where you can. We’re all in this together, and we’ll only be able to get through the difficult times ahead if we band together.
We are proud and honoured to be by your side to assist you in resolving your most difficult legal issues, and we look forward to continuing our relationship with you in the coming year in Germany, Europe, and around the world. We hope you will find this German Law Year-End Update useful and informative as you prepare for a successful start in 2021.
