BERLIN, Nov 1 (Reuters) - A German government stimulus
package will generate some 50 billion euros ($63.89 billion) in
investments and contracts, according to a joint paper by the
Economy and Finance Ministries seen by Reuters on Saturday.
Economy Minister Michael Glos said earlier this week the
package would introduce a range of steps worth up to about 30
billion euros to boost investment in Europe's biggest economy.
But the paper showed the ministries expected that measures
to secure corporate financing and liquidity would also assure
some 20 billion euros in investments, creating a total value for
the package of some 50 billion euros.
"The government's measures facilitate investments and
contracts for companies, private individuals and municipalities
in 2009 and 2010 to the tune of around 50 billion euros," the
ministries said in the paper.
The ministries added the government wanted to accept "the
full extent" of the reduced revenues and additional outgoings
resulting from the measures, suggesting the package would be
financed by issuing new debt.
"Due to the changes in economic conditions, a federal budget
without (net) new debt in 2011 is not achievable from today's
viewpoint," the ministries said, adding the government would do
everything it could to balance the budget as soon as possible.
Germany had aimed to balance the federal budget in 2011.
The government is working on the stimulus steps as fears
grow that a recession is looming in Germany -- a government
official told Reuters on Friday German GDP probably contracted
by 0.25 percent in the July-September period -- and that the
global financial crisis will hit firms and lead to higher
unemployment before next September's federal elections.
The plans are due to go to cabinet next Wednesday.
Last month, the government announced a 500 billion euro bank
rescue package to help restore confidence in the financial
system, but Chancellor Angela Merkel and other politicians want
to do what they can to help ordinary Germans.
(Writing by Paul Carrel)
Content Provided by
Reuters Reuters is the largest international news agency -- providing professionals around the world with stories that move the markets.
- 
- 
- 
Welcome,
Guest!
News
