# Sunset clause

- Canonical URL: https://www.gerhardmerk.de/sunset-clause
- Post ID: 592423
- Modified: 2023-07-25T21:11:39+00:00
- Language: en

## Definition

The granting of a subsidy or loan for a fixed, precisely defined period of time. The term is usually used in connection with government financial services, but less frequently also in connection with the financial flows in a - then often globally active - group of companies between a parent company and a subsidiary. - The knowledge that a deficit guarantee will expire on the due date creates a compulsion from the outset to operate in a cost-covering manner. - See moral hazard, tax financing, structural change, structural transformation, subsidies. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1