Chancellor Angela Merkel announced late Wednesday a 130 billion euro stimulus package for the years 2020 and 2021 designed to stimulate the German economy hit hard by the Covid-19 pandemic.
"The size of the recovery plan will be 130 billion euros for the years 2020-2021, of which 120 billion will be spent on the federal government," said Angela Merkel at a press conference after two days. meeting between conservatives and social democrats, the partners of the government coalition.
"So we have an economic recovery plan, a plan for the future and, of course, on top of that, we are now taking care of our responsibility for Europe and the international dimension," she said. .
Purchase premium debate to support the automotive sector
Even if Germany has so far been less affected by the pandemic on the human level than its neighbors, with some 8,500 dead, its economy, highly dependent on exports, has been severely shaken.
Among the measures announced are, in addition to the temporary reduction in VAT and debt transfers from municipalities to the federal state, an allowance of 300 euros per child for families or new aid for businesses in difficulty.
The most discussed point was the implementation of a purchase premium to support the automotive sector, practically stopped for several months. The Social Democrats (SPD), who opposed any subsidy of polluting cars, seem to have won the battle here: in the end, the members of the "grand coalition" voted against a premium for the purchase of cars from gasoline or diesel with low emissions. On the other hand, the premium for the purchase of an electric vehicle will be doubled, going from 3,000 to 6,000 euros.
An unemployment rate of 6.3%
This recovery plan is in addition to the huge plan of more than 1,000 billion euros set up in March, at the height of the pandemic, providing aid to businesses and billions of euros in guaranteed loans.
While Germany saw its unemployment rate continue to climb in May, to 6.3%, pushing companies to apply for partial unemployment for more than 11 million workers since March, the government wanted to lend its support again companies in difficulty.
Angela Merkel justified this aid to support the millions of workers currently on short work: "It shows how fragile the whole (of the economy) is and that it is necessary to succeed in stimulating the economy for jobs to be insured ”.
- Germany
- Economy
- Covid 19
- Coronavirus
- Angela Merkel
- World