German parliament approves economic stimulus package

7th December 2008, Comments 0 comments

Chancellor Angela Merkel says the package, worth 32 billion euros, will spark 50 billion euros' worth of economic activity.

Berlin -- Despite some resistance from some of Germany's 16 states, the upper house of parliament approved on Friday a package of measures aimed at getting Europe's biggest economy out of recession.

Chancellor Angela Merkel says the package, announced last month, is worth 32 billion euros (41 billion dollars) and will spark some 50 billion euros' worth of economic activity.

The measures include tax breaks for firms, state-backed loans for small and medium-sized companies, exempting new cars from road tax for a year and accelerated state infrastructure spending

The lower house, the Bundestag, approved the package on Thursday.

Germany entered a technical recession in the third quarter and Merkel is coming under growing pressure from employers, economists, other countries and even within her own party to do more.

Merkel's cabinet was due to discuss possible additional measures in January.

DPA/Expatica

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