Germany Seeks 50 Billion Euro Economic Boost
Come on people! Take it or leave it! *German Chancellor Angela Merkel's ruling CDU party has proposed 50 billion euro fiscal stimulus package of investment and tax cuts aimed at helping the German economy through the recession. "With our 'Pact for Germany' we are providing the impetus ... for growth, for employment in Germany because employment for people is our overriding concern," Merkel told reporters. Merkel had just warned her European neighbors against a reckless "race to spend billions" to fight the global recession, preferring a wait-and-see approach. The new package is a second, stronger shot in the arm for the world's number one exporter after a first, 12-billion-euro effort announced in November came up short. Finalized in late-night talks between Merkel's CDU conservatives and the centre-left SPD, it includes 17-18 billion euros in investments in roads and schools, and nine billion euros in tax cuts for firms and individuals. It also includes a 100-billion-euro loan guarantee program to help stricken companies hobbled by the credit crunch, according to a copy of the agreement obtained by AFP. Other elements include a one-off, 100-euro extra child benefit payment and sweeteners to persuade reluctant consumers to buy new, environmentally friendly cars to boost Germany's struggling auto sector. It also includes cuts in health insurance contributions for employers and employees to slash the cost of job creation and to put more cash in shoppers' pockets, and ...
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