Evaluation of COVID-19 support measures: Rapid support for the economy

With the coronavirus pandemic, Germany and many countries around the world found themselves in a crisis that arose at short notice. This led to drastic public health measures. The months-long lockdowns imposed to combat the pandemic had an immediate impact on social and economic life. Changes in consumer behaviour and disrupted supply chains led to massive losses in turnover for businesses. Micro-enterprises, small and medium-sized enterprises (SMEs) and self-employed individuals were particularly affected by this due to their limited cash reserves.

To limit the economic impact of these measures, the German government approved various support programmes. On behalf of the Federal Ministry for Economic Affairs and Energy (BMWE), we worked with the Leibniz Centre for European Economic Research (ZEW) to evaluate the impact of the so-called COVID-19 economic aid.

The first part of the evaluation, which is now available, draws a generally positive conclusion: The COVID-19 measures have helped to safeguard the survival of viable businesses and thus stabilise the economy in the medium term. This was an important prerequisite for a swift recovery following the pandemic, which, however, was then confronted with a new crisis: Russia’s invasion of Ukraine and the resulting drastic rise in energy costs. The evaluation sets out recommendations for improving support measures in future crisis situations.

An overview of the COVID-19 economic support measures

The economic support measures comprised a wide range of instruments, including:

• Emergency aid: Rapid, unbureaucratic grants to safeguard liquidity during the first lockdown from March to May 2020.
• Bridging aid: Support to cover fixed costs in the event of sharp falls in turnover.
• Extraordinary economic aid: Compensation for the second lockdown (November and December aid).
• Restart and hardship aid: Additional measures for sole traders and businesses that were unable to make use of the existing instruments and suffered significant losses in turnover.

Survival of businesses secured and the economy stabilised

With regard to the achievement of objectives, effectiveness and cost-effectiveness of the support measures, the evaluation reaches the following conclusions.

Achievement of objectives

The COVID-19 economic aid measures…

• helped to mitigate liquidity bottlenecks, thereby improving the solvency of otherwise profitable businesses affected by the measures to contain the pandemic;
• in conjunction with other measures, helped to secure the survival of affected businesses;
• formed an important component of the federal and state governments’ portfolio of measures for safeguarding jobs in affected businesses;
• were implemented swiftly. This was crucial for the rapid disbursement of funds and thus for counteracting the threat of insolvency;
• were able to cater to the needs of different target groups and thus reached the companies particularly affected.

Effectiveness

The COVID-19 economic aid schemes, in conjunction with other measures taken by the German federal and state governments, contributed directly to the stabilisation of the economy. The positive effects on liquidity and the low number of business closures can be attributed to the overall package of aid programmes, but not to individual measures.

Cost-effectiveness

• The costs of implementing the measures were reduced over time thanks to efficiency gains resulting from the digitalisation and centralisation of procedures. Overall, the COVID-19 economic support measures were implemented cost-effectively.
• Procedural and process quality can be regarded as positive, given the significant time pressure during implementation.
• The division of responsibilities and communication between the federal and state governments were clear and transparent.
• To prevent fraud, improvements were gradually and successfully introduced.
• The positive effects on payment behaviour and creditworthiness of the subsidised companies suggest that the direct financial transfers were appropriate and tailored to the target group.
• The COVID-19 economic aid schemes had positive effects, particularly on service and retail companies, as well as micro-enterprises.
• An international comparison shows that grant schemes were a widely used and suitable means of compensating for losses of turnover resulting from government pandemic measures.

Recommendations for future crises

Despite the overall positive outcome, the evaluation also identified areas for improvement. For future crises, the following findings should be incorporated into the design of support measures:

• Standardised digital platform: A common digital platform for applications and payments should be made available quickly in order to standardise the administrative process and improve the quality of applications, verification and approval.
• Integration of feedback procedures: Future support programmes should integrate feedback procedures and verification routines from the outset to avoid overcompensation and increase the efficiency of the measures.
• Early involvement of relevant stakeholders: The early involvement of additional relevant stakeholders (e.g. tax authorities) can help to improve the design of technical interfaces and reduce coordination problems.
• Structured data collection and documentation: The systematic collection and clear labelling of application and company data should be implemented to improve the quality of information and facilitate subsequent evaluations.

Our approach

The evaluation is based on a broad range of empirical methods that combine qualitative and quantitative approaches. These include:

• data analyses (including control group analyses)
• survey of implementation costs at federal and state level
• modelling and analysis of administrative processes
• online survey of grant recipients
• interviews with political decision-makers, representatives of the administration, experts and industry representatives
• focus groups with administrative officials in the federal states and industry representatives

Links and downloads

The study (PDF, in German)

The BMWE’s report (BMWE website, in German)

Project team: Michael Astor, Shayan Beland, Dr Eva Dantas, Jan Limbers, Rahel Reemtsma, Dr Andreas Sachs, Isabel Schöfl, Jan Tiessen

Last updated: 24.09.2025