German coalition parties wrestle over fiscal stimulus package

Video credit: Reuters Studio
Published on June 2, 2020 - Duration: 01:28s

German coalition parties wrestle over fiscal stimulus package

Chancellor Angela Merkel's ruling coalition wrestled on Tuesday over the final details of a massive stimulus package.

Ciara Lee reports

German coalition parties wrestle over fiscal stimulus package

As countries creep out of isolation, getting companies and employees back on their feet is a priority.

Germany is planning a massive stimulus package to help.

German chancellor Angela Merkel's ruling coalition on Tuesday (June 2) wrestled over the final details.

Talks were due to end by 11pm but any announcement was pushed back to Wednesday (June 3).

The package's aim is to help Europe's largest economy recover more quickly.

Sources have said it will include measures worth up to 100 billion euros or 111 billion dollars.

It comes off the back of an unprecedented 750 billion euro EU rescue package.

Finance Minister Olaf Scholz wants the new measures to be "temporary yet transformative." The number of German workers on reduced hours rose to 7.3 million in May, with almost all sectors represented.

That compares with around 1.5 million workers during the financial crisis in May 2009.

Proposals on the table include cash handouts for families to boost spending.

Extra relief for districts struggling with lower tax receipts.

And further funds for companies with fewer than 250 employees.

Additional support for the car industry has also been suggested and that's where things could get heated.

Germany's Social Democrats want cash incentives to buy a new car to exclude combustion engine vehicles.

A survey showed last week that the majority of Germans agree.

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