Germany approves stimulus package

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Germany has approved a 50bn euro ($63bn, Â£44bn) stimulus plan aimed at boosting Europe's largest economy.

The plan was approved by the upper house of parliament, which represents Germany's 16 state governments.

It includes infrastructure investments, tax relief, reductions in health care contributions and money for families with children.

The package follows an earlier 23 bn-euro plan that was criticised for being too cautious.

Chancellor Angela Merkel said that Germany would emerge from the crisis stronger than when it entered it.

"We are operating on the principle that Germany is strong and therefore can come to terms with this difficult economic situation," Ms Merkel said.

"With the biggest package in the history of the federal republic of Germany, we are also living up to our international responsibilities."

The plan also provides 2,500-euro bonuses to people who give up old cars to buy new vehicles.

Germany's economy went into recession last year as the global downturn hit demand for exports.

It is expected to contract more than 2% this year, its worst performance since World War II.