Angela Merkel (Ansa)

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03 June 2020The new economic and family support package decided by the Grosse Koalition foresees measures for 130 billion euros between 2021 and 2021. Chancellor Angela Merkel said in Berlin, after the meeting of the leaders of the Grosse parties Grand Coalition.

German government parties have agreed on an incentive package of 130 billion euros intended to kick off the largest European economy, which has suffered a severe blow from the coronavirus pandemic. After two days of talks in Berlin, Chancellor Angela Merkel said the package is a "bold response" which will increase consumption and investment and ease stress for families and businesses. The incentive package will benefit ordinary debt burdens, contribute to a reduction in value added tax for six months from July to the end of the year and provide a bonus of € 300 per child for families. The money will cover the years 2020 and 2021.

It was a negotiation lasting about 21 hours, between yesterday and today, between the leaders of CDU, CSU and SPD that have agreed on this multi-point support plan. Among the main measures decided, support with billionaire aid to Municipalities in difficulty; the reduction of VAT from 19 to 16%, and as regards the discounted rates from 7 to 5%, in the period between 1 July and 31 December; a bonus for families, which provides for a one-time payment of 300 euros for each child. There are also other resources to support businesses - "bridge aid" for up to 25 billion - in the sectors most affected by the effects of the pandemic. In addition, 50 billion will be earmarked for future investments, which also include the promotion of electromobility.