Germany is looking for a new $ 112 billion coronavirus stimulus package, just days after the European Union launched a historic package worth $ 826 billion | Instant News


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Germany is reportedly planning a new 100 billion euro ($ 112 billion) new domestic stimulus package to counter the economic impact of the coronavirus, just days after the European Union published a historic rescue plan worth 750 billion euros ($ 826 billion).

Bloomberg reports that German Chancellor Angela Merkel will host a meeting at 8:00 ET with her party, the Christian Democratic Union, and the Social Democrats – who helped form the German coalition government – to discuss the bailout.

One source told Bloomberg that they would try to negotiate an agreement in the range of an additional 50 billion euros ($ 55.6 billion) to 100 billion euros ($ 112 billion).

This is the second time the Merkel government launched a stimulus after doing so in March when the coronavirus spread.

Various measures to be considered are debt relief for troubled areas in Germany, assistance for families with child cash bonuses and incentives to stimulate car sales.

German Finance Minister Olaf Scholz is considering extending a program called “Kurzarbeit,” which is unemployment insurance regulated by the government, according to local newspapers Bild.

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The secret source said Social Democrats preferred spending close to $ 112 billion while Merkel’s party preferred to keep new stimulus limited.

Bild said the total package would range between 75 billion euros ($ 83.9 billion) and 80 billion euros ($ 89.4 billion), far lower than the top figures quoted by Bloomberg.

The European Union last week proposed a recovery package worth 750 billion euros (about $ 826 billion), to help the 27-member block survive the coronavirus pandemic economic massacre.

The official process for negotiations will begin with informal discussions between European governments, followed by the first formal discussion in Europe Eurogroup on June 11.

Germany’s new stimulus measures will stand alone from the EU package, and focus on the domestic economy, with steps likely to be proposed including incentives to boost the country’s vital auto industry.

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German economic minister Peter Altmaier is said to support lucrative car maker subsidies.

The government can introduce sales bonuses that give drivers incentives to choose cleaner and less polluting vehicles, such as low-emission diesel cars, a confidential source told Bloomberg.

Reuters reported Sunday, the German economy ministry had proposed a 5 billion euro ($ 5.6 billion) car buyer bonus scheme.

The plan will provide 2,500 euros ($ 2,790) per car, and this will be added to € 500 ($ 559) for fuel-efficient vehicles.

Other measures reportedly being considered include a rescue fund worth 57 billion euros ($ 63.7 billion) to help struggling city governments pay off their debts, and increase family subsidies, which will give each family 300 euros ($ 335) per child, up from around 200 euros ($ 224) now.

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