German Chancellor Angela Merkel will attempt to reach a compromise later on Tuesday on a second stimulus package to steer Europe’s largest economy through the corona crisis. From 2 pm this afternoon, she will receive several leaders and officials from her own Christian Democratic party CDU as well as the Social Democratic SPD. According to insiders, it concerns a package between 50 billion and 100 billion euros.
In March, Berlin launched an initial support package with incentives and guarantees to protect consumers and businesses from the effects of the virus outbreak. The second package aims to boost the country’s economy. The expected 6 percent contraction this year would be the deepest downturn since the aftermath of World War II.
Possible measures discussed range from debt relief for municipalities to subsidies to boost car sales. It would also talk about helping families with children. Finance Minister Olaf Scholz would also like to expand a state wage support program known in German as Kurzarbeit.
The Social Democrats insist on spending more than 100 billion euros, while Merkel’s party reportedly wants to limit the amount of new debt. According to the German newspaper Bild, a support package of 75 billion to 80 billion euros will be agreed. The federal government will account for more than 60 billion euros of this. The regional authorities the remaining amount.