Merkel Partners Haggle Over $111 Billion Stimulus as Talks Slow

German Chancellor Angela Merkel’s effort to broker a compromise on a second stimulus package for Europe’s biggest economy is likely to drag into Wednesday, as the two sides in the ruling coalition struggle to bridge differences on a wide range of issues.

The Merkel administration had launched an initial shot of stimulus and guarantees in March to cushion consumers and businesses from the impact of the outbreak. Now officials will focus on trying to bring the economy back from a contraction expected to exceed 6% this year, the deepest since the aftermath of World War II.