Economics
Merkel Stimulus Seals German Shift From Frugality to Largess
- ‘Government has made a complete U-turn,’ Brzeski says
- Coalition agreed bigger package including sales-tax cut
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It took Chancellor Angela Merkel two days to broker a 130 billion-euro ($145 billion) package of stimulus measures for the ailing German economy, but economists largely agree the result was worth the wait.
The package -- about 30% bigger than expected -- adds to an effort launched in March that means Germany has now made more than 1.3 trillion euros available to cushion the impact of the coronavirus, by far the most in the European Union. A commitment to balanced budgets has been cast aside to confront the worst economic crisis since the aftermath of World War II.