How Germany plans to pump up its economy
Germany’s government has approved a stimulus package to help the economy recover from the coronavirus crisis. Under the 130nbillioneuro deal, taxes will be cut and money given directly to families.
Among the changes are a drop in the VAT rate for 6 months.
There’s extra funding for municipalities to spend on infrastructure and housing.
And there’s incentives to buy electric cars. This comes as Germany faces its worst recession since World War 2 following weeks of lockdown and business closures. Some quarter of a million people lost their jobs in May alone, bringing the total number of unemployed to nearly 3 million. Chancellor Angela Merkel said the deal was designed to help the economy adapt going forward.