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This time, the government expects some 2.35 million people to be drawing "Kurzarbeitergeld" — a short-term allowance — which could cost the Federal Labor Office more than 10 billion euros. But Germany, traditionally frugal with its cash, is well-equipped to deploy these funds and has saved during the good years. Even the Labor Office itself has built up reserves of 26 billion euros, which now can be used to support companies and employees.


"Unlike in the last crisis, where predominantly industrial companies were tapping the scheme, now it's also small service companies like restaurants and consultants who make use of Kurzarbeit," explained Schneider.

The who's who of the German corporate world have sent staff on shorter working hours — the likes of Lufthansa, BMW, Volkswagen and Daimler have all made use of the labor market instrument to keep their well-trained staff during the coronavirus pandemic.

And this time it could also get used by other countries. The president of the European Commission, Ursula von der Leyen, has floated the idea of introducing the scheme in other countries, backed by as much as 100 billion euros which the Commission would have to raise.

Of course the funds would need to be guaranteed by EU member states — meaning Germany might have to shoulder as much as 25% of that bill.

Instead of going down the way of "corona bonds," issuing joint debt instruments across the euro zone, solidarity could com

e instead via this instrument to prevent massive job losses in countries like Spain and Italy which have been worst affected by the virus so far.