German stimulus plan might break EU deficit rules
As Germany tries to put the wheels back on its economy, it is warning it will not be able to meet EU budget and deficit rules next year.
Tuesday, 13.01.2009.
15:25
As Germany tries to put the wheels back on its economy, it is warning it will not be able to meet EU budget and deficit rules next year. The coalition that rules Europe’s largest economy has approved a second stimulus package worth EUR 50bn. German stimulus plan might break EU deficit rules There will be credit guarantees to shore up German firms, investment in infrastructure and schools and tax relief. There was fierce political debate about what the money should be spent on in this package, the second to be launched since November. The auto industry will also get some help to boost sales. The opposition in Germany has criticised the latest package, saying it will not be enough. Other critics are worried about the impact it is going to have on the budget. The government says another stimulus package was needed to offset the effects of what is shaping up to be Germany’s worst post-war recession.
German stimulus plan might break EU deficit rules
There will be credit guarantees to shore up German firms, investment in infrastructure and schools and tax relief. There was fierce political debate about what the money should be spent on in this package, the second to be launched since November. The auto industry will also get some help to boost sales.The opposition in Germany has criticised the latest package, saying it will not be enough. Other critics are worried about the impact it is going to have on the budget. The government says another stimulus package was needed to offset the effects of what is shaping up to be Germany’s worst post-war recession.
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