Germany ready for a second stimulus package of 70-80 billion


the second stimulus package

But the government parties, CDU and SPD, are divided over the granting of new incentives for scrapping

by Roberta Miraglia

The protest of ecologists in Berlin

But the government parties, CDU and SPD, are divided over the granting of new incentives for scrapping

3 ‘of reading

Germany is preparing to develop a new stimulus package for the economy that should be worth between 70 and 80 billion euros. Among the proposals on the table of the representatives of the Great Coalition there are liquidity for families in order to push consumption, funds for municipalities that have seen a drop in revenues, tax aid for businesses. Furthermore, a part of the majority would like to introduce incentives for the purchase of cars. But on this point there is still no agreement and the long meeting on Tuesday to decide the lines of intervention was updated on Wednesday 3 June.

The second stimulus package
Germany has already launched a first package of unprecedented value in March – € 750 billion – derogating from the budgetary balance rule. Tuesday Olaf Scholz, the SPD’s finance minister, before the majority meeting in the chancellery in Berlin, said the new measures should be “timely, targeted, temporary and impactful”.

Measures aimed at families …
In order to increase consumption, families could count on an increase in child allowance from the current 204 euros per child per month to 300. At the proposal of Minister Scholz, which would make available about 6 billion more, Angela Merkel’s party does not oppose but would like to modulate the measure by facilitating lower-income families. Some members of the coalition, however, point to aid for families, also for electoral reasons: the president of Westphalia, Armin Laschet – who runs for the presidency of the CDU – asked that the monthly allowance be tripled to 600 euros for each child.

… and small and medium-sized enterprises
For small and medium-sized enterprises, the CDU would like additional subsidized loans of around € 25 billion and the Minister of Economy Peter Altmaier also proposes the tax exemption of investments. However, the owner of Finance Scholz would like to avoid that companies, by deducting the losses accumulated in the current crisis, may be entitled to refunds of taxes paid in the previous periods in which they made profits.

Aid to local authorities

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