Merkel: 130 billion-euro economy recovery plan

German Chancellor Angela Merkel announced a plan to restore the 130 billion-euro economy for 2020-2021, destined to stimulate the German economy, hit hard by COVID-19's pandemic.

The “Vlera of this plan will be 130 billion euros for 2020-2021, 120 billion of which will be spent on the federal government”, Merkel confirmed at a press conference at the end of a two-day meeting between conservatives and social-democrats, partners of the government coalition.

“We have a plan for economic recovery, a plan for the future and of course, plus, we already bear our responsibility for Europe and the international dimension”, Merkel underlined.

Although Germany has so far been less affected than neighbors from pandemic to human plan, with about 8,500 deaths, its economy, heavily dependent on exports, has been hit sharply.

Among the announced measures are included, in addition to the provisional reduction of VAT and the transfer of municipal debts to the federal state, a 300-euro child support for families and other aid to struggling companies.

This plan is added to the giant plan of more than 1,000,000 euros announced in March on the pit of pandemic, envisioning assistance to companies and billions of euros in guaranteed loans.