German Government Approves Additional $10.81Bn Stimulus Package

The Package was Approved by the Ruling Coalition after Long Negotiation

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The German government has pledged a $10.81bn aid package to those hit by coronavirus pandemic. The aid package includes more government wage support for people in short-time work schemes and is expected to shield the workers and companies from the effects off the pandemic.

Senior members of Chancellor Angela Merkel’s ruling coalition also agreed to lower the tax burden for the catering industry through a reduced VAT rate of 7 percent for food and to give some tax relief for small companies.

The government also agreed to increase funding for schools and pupils to boost e-learning and digitalization.

“Germany has successfully slowed down the COVID-19 pandemic through drastic restrictions. This has significant economic and social consequences,” the coalition said in a statement released after more than seven hours of negotiations.

The stimulus package will allow the government to keep financial means for future measures, the party said. The government had already approved an initial stimulus package worth $811.31bn