The German government recently approved a stimulus package worth some €29 billion in order to help the country weather a global economic downturn. The stimulus program includes tax breaks on purchases of cars, loans for businesses and money for roads, highways and railroads.
German Chancellor Angela Merkel announced the package, calling it bold: “We will have difficulties in 2009,” Ms. Merkel said this week. “We want to do something to counter this with investment incentives.”
Michael Glos, minister of the economy, said the program was very targeted in its goals. “It’s a tailored economic growth package, not a classic stimulus program,” he said at a news conference. “We want to strengthen the power of the economy to resist the impact of the crisis.”
The plan provides consumers a one year tax holiday for new cars and subsidies for certain household repairs. Companies will also receive assistance, particularly with access to credit, and the government will invest in infrastructure improvements.
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