Coronavirus, Germany makes nearly 150 billion euros to support the country's economy

Germany is preparing a budget of 150 billion euros to support businesses threatened by the Coronavirus epidemic, announced Finance Minister Olaf Scholz.

Government sources have indicated to Reuters that hundreds of billions of euros in additional support for the private sector would be secured, while Scholz said the ceiling of the government's new debt set in the German constitution would be suspended in view of the extraordinary circumstances.

“150 billion euros is a huge sum, but that gives us the flexibility we need now. Moreover, we are ensuring that other institutions in the country can take necessary measures to stabilise our businesses. It is important to send a strong and clear signal from the start of”, Scholz said.

Under German law, Berlin has no right to create new debts exceeding 0.5 percent of GDP, unless the country is affected by a natural disaster or by an extraordinary situation of the same kind.

Chancellor Angela Merkel has promised to do “all that is necessary” to deal with the impact of the epidemic, and her government is expected to approve the package Monday.