"We are a strong country," declared the Chancellor at a special session of the German Bundestag. "Our country is determined and able to provide swift and direct assistance."

Thanks to all rescue workers and the many volunteers who helped

"We have once again seen that voluntary commitment is a vital pillar in our society," said Angela Merkel. As well as the Bundeswehr troops, the specialised assistance provided by the THW and the federal police force, she thanked the fire brigade and the many volunteers who helped: friends, families and neighbours of flood victims, total strangers and many young people who got together via social networks to help.

Emergency assistance as a sign of solidarity

The German government pledged the affected states support with emergency assistance at a very early stage. "We will match the assistance provided by the individual states, euro for euro," said Angela Merkel. It will be up to the states themselves to design the aid programmes. "That is only possible on the ground."

The emergency assistance will benefit private households, commercial undertakings and companies as well as local infrastructure. "Emergency assistance is also urgently needed by farmers, some of whom have been disastrously affected," declared the Chancellor. All in all the federal government expects to provide 400 million euros here.

Cash for reconstruction

Over and above the emergency assistance, rapid reconstruction measures are needed. This will mean "major financial efforts". This is why the German government will be giving the go-ahead for a reconstruction aid fund, which is "in line with needs and targeted".

The federal government will initially finance the fund in its entirety, putting up a sum of 8 billion euros. The costs of rebuilding federal infrastructure destroyed by the flooding, put at some 1.5 billion euros, will be borne solely by the federal government. The federal states will provide half of the remaining sum of 3.25 billion euros. They will be given 20 years to pay up their share.

The federal government will lay down the details of how the cash is to be distributed in an ordinance, once the damage can be better assessed, said the Chancellor. The federal and state governments will accept their financial responsibility.

The federal government will not be raising taxes to finance the new fund, but will borrow the cash, pushing up new net borrowing this year. "We can do so with a good conscience because the federal government has already done much to put its financial house in order with our successful fiscal consolidation efforts," underlined the Chancellor. "We are still well within the ceiling on new debt."

Assistance for businesses

The federal government will be continuing the measures already launched to cope with the consequences of the flooding. The ten-point programme for reconstruction provides for assistance through the Kreditanstalt für Wiederaufbau (KfW).

There will also be a special programme for short-time working and a suspension of the time limit for declarations of insolvency on the part of businesses, explained the Chancellor. "And we want to mobilise people to donate what they can." A large number of steps will be taken to facilitate procedures.

"The federal and state governments will have support, also from Europe," explained Angela Merkel. The European Union Solidarity Fund is available to provide assistance as is the European Investment Bank. The options provided for within the framework of structural assistance too must be used.

A flood task force has been set up at the Federal Interior Ministry. On its website the ministry also has a special section on assistance for flood victims which contains important information.

Improving flood prevention measures

"We must take precautionary action. We must learn from this flood of the century as it has been called, so that we are better prepared in future," said Angela Merkel. A distinction must be made between measures already planned that have not yet been implemented and new concepts, but everyone must do their bit.

"I am confident that we can cope with this national challenge together. We can be proud of what our country stands for and what makes us strong. When the chips are down, we are there for one another," underscored the Chancellor.