As Germany is looking for ways to reboot its economic activity, the country’s ruling coalition has agreed on a EUR 130-billion rescue plan, which puts an emphasis on boosting consumption, innovation and digitalisation of the economy.
The German economy went into recession during the first quarter of 2020, with the second quarter expected to see the slowdown deepen. Unemployment in the country has risen rose to 6.3% from 5.8% over the past month.
“It’s clear that all of this requires a bold response,” German Chancellor Angela Merkel stated on Wednesday, June 3.
“It’s about securing jobs, and keeping the economy running, or getting it going again.”
The measures include temporarily cutting value-added tax from 19% to 16%, providing families with an additional EUR 300 per child and doubling a government-supported rebate on electric car purchases. The package also establishes a EUR 50 billion fund for addressing climate change, innovation and digitization within the German economy.