German coalition parties agree 130 billion euro stimulus package

Chancellor Angela Merkel’s ruling coalition on Wednesday agreed a bumper stimulus package to speed up Germany’s recovery from the coronavirus. Speaking at a news conference after marathon talks that extended well into the night, Merkel said the package would amount to 130 billion euros (116 billion pounds) and include lower value-added tax (VAT) to boost consumption. “The size of the package will amount to 130 billion euros for the years 2020/2021, 120 billion of which will be spent by the federal government,” Merkel said. “So we have an economic stimulus package, a package for the future.”