Germany's upper house approves €50 bln stimulus package

Germany's Bundesrat upper house of parliament approved a 50 billion euro stimulus package to help Europe's biggest economy withstand what its worst recession since WW2.

Germany's upper house approves €50 bln stimulus package
Germany's Bundesrat upper house of parliament approved a 50 billion euro ($62.88 billion) stimulus package on Friday to help Europe's biggest economy withstand what its worst recession since World War Two. A majority of members of the upper house, who represent Germany's 16 states, voted in favour of the package, which includes a mix of infrastructure investment and tax cuts.

The package, agreed by Chancellor Angela Merkel's coalition of her own conservatives and the Social Democrats, followed a first stimulus package last year, which the government said was worth about 31 billion euros.

Some opposition parties had threatened to hold up the package in the upper house to try to push through some changes but in the end, a majority backed the measures.

A planned supplementary budget agreed by cabinet to fund the package foresees new borrowing rising to 36.8 billion euros in 2009, more than three time 2008 levels.

Once President Horst Koehler signs it off, the package will become law.

Reuters
Last Mod: 20 Şubat 2009, 15:34
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