Coronavirus: Germany adopts 1100 billion euros plan

Text by: Pascal Thibaut Follow

Germany adopted on Wednesday a new plan since the war of 1.1 trillion euros to minimize the economic and social impact of the crisis caused by the Covid-19. An amount that represents almost a third of the country's total wealth in a year.

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From our correspondent in Berlin,

Finance Minister Olaf Scholz recently spoke of a " bazooka ". We could thus evoke the Grosse Bertha. The parliamentarians had to approve the suspension of the constitutional rule which only allows Germany to have a budget deficit of 0.35% of gross domestic product at most. A sacred cow has just been sacrificed.

" In the current crisis, the German government is doing everything necessary and everything possible to reduce the economic and social consequences. Our plan calls for a gigantic sum. We can afford it. The main thing is to quickly help those in need, ”said Vice-Chancellor Olaf Scholz.

The plan includes a relief fund for large companies and a severe increase in the resources of the public bank KfW to guarantee loans. The supplementary budget provides for 156 billion more spending. A third is intended for the self-employed and small businesses to reduce their difficulties.

► Read also: Coronavirus: Germany implements an economic rescue plan

Social measures provide for a deferral of payment for the rents of private individuals, a relaxation of the rules of partial unemployment and support for hospitals.

Germany will be in recession this year. But estimates vary: the decline could be more severe than in 2009 with -5%.

After the Bundestag's very broad vote on Wednesday, the approval of these measures by the upper house representing the regions has been acquired on Friday.

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• Germany
• Coronavirus
• Economic crisis
• Economy

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