This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7825513.stm

The article has changed 7 times. There is an RSS feed of changes available.

Version 2 Version 3
Germany agrees 50bn euro stimulus Germany agrees 50bn euro stimulus
(40 minutes later)
Germany's coalition government has agreed an economic stimulus package worth about 50bn euros ($67bn; £45bn), senior ministers have said.Germany's coalition government has agreed an economic stimulus package worth about 50bn euros ($67bn; £45bn), senior ministers have said.
More details are expected later of the measures aimed at helping the country during what some fear could be its worst recession since World War II.More details are expected later of the measures aimed at helping the country during what some fear could be its worst recession since World War II.
The initiatives include investments in railways, roads and schools, as well as a number of tax relief measures.The initiatives include investments in railways, roads and schools, as well as a number of tax relief measures.
A 23bn euros plan, passed last month, was derided for being too cautious. A 23bn euro plan, passed last month, was derided for being too cautious.
In its second attempt to kickstart Europe's largest economy, Chancellor Angela Merkel's cabinet has gone further, and she is expected to unveil the details of the plan on Tuesday.In its second attempt to kickstart Europe's largest economy, Chancellor Angela Merkel's cabinet has gone further, and she is expected to unveil the details of the plan on Tuesday.
"All in all, it is a package that will help get us through the financial crisis and secure jobs," said Christian Democrat parliamentary president Volker Kauder."All in all, it is a package that will help get us through the financial crisis and secure jobs," said Christian Democrat parliamentary president Volker Kauder.
Tax cutsTax cuts
The agreement follows squabbles between the Social Democrats and Christian Democrats over how to shore up the German economy and prevent job losses.The agreement follows squabbles between the Social Democrats and Christian Democrats over how to shore up the German economy and prevent job losses.
The new two-year stimulus package will include investment measures worth around 18bn euros for infrastructure projects, correspondents say.The new two-year stimulus package will include investment measures worth around 18bn euros for infrastructure projects, correspondents say.
The package is also expected to include:
  • A 100bn euro programme for firms struggling through the ongoing credit crunch
  • Tax cuts and breaks, including reductions in state health care contributions and bonuses of 100 euros per child
  • A 2,500 euro payment for scrapping a car older than nine years and buying a new vehicle
The package is also expected to include:
  • A 100bn euro programme for firms struggling through the ongoing credit crunch
  • Tax cuts and breaks, including reductions in state health care contributions and bonuses of 100 euros per child
  • A 2,500 euro payment for scrapping a car older than nine years and buying a new vehicle
But, says the BBC's Steve Rosenberg in Berlin, this package alone will not solve Germany's biggest problem at the moment: its falling exports.But, says the BBC's Steve Rosenberg in Berlin, this package alone will not solve Germany's biggest problem at the moment: its falling exports.
Due to the global economic downturn, there is less demand abroad for German goods, such as cars and machine tools.Due to the global economic downturn, there is less demand abroad for German goods, such as cars and machine tools.
Germany is heavily reliant on exports, which saw their largest fall in November since reunification in 1990.Germany is heavily reliant on exports, which saw their largest fall in November since reunification in 1990.
Last year it unveiled a bail-out for businesses worth up to 500bn euros but its use has been limited due to strict conditions attached to taking the money.Last year it unveiled a bail-out for businesses worth up to 500bn euros but its use has been limited due to strict conditions attached to taking the money.
Meanwhile, figures released on Tuesday morning showed that German wholesale prices fell 3% in December from the previous month, and were down 3.3% on a year-on-year basis.Meanwhile, figures released on Tuesday morning showed that German wholesale prices fell 3% in December from the previous month, and were down 3.3% on a year-on-year basis.