German cabinet backs fiscal stimulus plan

The German government has abandoned its goal of balancing the federal budget by 2011, one of the central objectives of chancellor Angela Merkel, Berlin conceded on the 5 November 2008 as the cabinet endorsed a smaller-than-expected fiscal stimulus to prop up the country’s decelerating economy.

The aid package included cheap loans for firms, increased investment in public infrastructure such as highways, tax breaks for efficient cars and tax rules that allow for more rapid depreciation of business investments.

Deutsche Welle, 5.11.08: German Cabinet Approves Economic Aid Package http://www.dw-world.de/dw/article/0,2144,3764375,00.html

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