Effective aid programs in the energy price crisis: Proposals for more liquidity in private households and companies

To that end, simple and effective tools are the way to go. Intervening in price mechanisms or changing the market design can lead to unexpected distortions and should therefore be carefully considered. Therefore, the approach of making direct payments to private households and companies that are as targeted as possible is reasonable. In the case of low-income private households, this must be done through non-repayable grants. For companies, on the other hand, liquidity aids are the first choice.

In addition to loans, the tax policy offers potential to increase liquidity without risking excessive subsidies or creating high free-rider effects. Like the corona pandemic, politicians should give companies generous deferral options for income and sales taxes and, for this purpose, partially reimburse advance payments already made. At the same time, the options for offsetting tax losses should be expanded.

The introduction of a negative tax as a simple procedure to support the solvency of companies would be consistent and an opportunity for a structural improvement in case of future crises.