Republic in focus

Cofag wind-up: “This is politically explosive”

The COVID financing agency was wound up on August 1. There is a threat of massive reclaims of subsidies from tax offices. Companies and their lawyers are fighting back.

The Covid-19 Financing Agency, or Cofag for short: the word monster caused a huge stir in the Republic. According to the Constitutional Court (VfGH), the government had acted unconstitutionally by founding Cofag and thus providing billions in coronavirus aid. Especially because the agency was outsourced by the Republic. That means: liquidation. This came into force on August 1. And it will be unpleasant - for many.