The German government approved a 130 billion euro economic stimulus plan, which will be spent during 2020 and 2021 to support the economy in the face of the consequences of the Corona pandemic.

According to Arabia Net, German Chancellor Angela Merkel said during a press conference after two days of talks between conservatives and Social Democrats, partners in the government coalition, that the size of the stimulus plan will be 130 billion euros for the years 2020 and 2021, of which 120 billion will be borne by the federal government.

We have a plan for economic stimulus, a plan for the future, confirming that Germany will assume its responsibilities European and globally, according to Agence France-Presse.

Although Germany is less affected by Covid-19 than its neighbors in terms of human losses with about 8,500 deaths, its export-oriented economy has been severely affected by the pandemic. .

The plan provides for a wide range of measures, including, in particular, a temporary reduction in value added tax, the federal state carries local government debt, and family benefits of 300 euros per child. / p>

The talks witnessed an extensive discussion about government subsidies intended to support the auto industry, which has been suffering for almost a few months from near paralysis.

It seems that the Social Democratic Party, which opposes the provision of subsidies for cars that are not green, won the battle, as it was decided to limit the benefits to electric cars.

The plan noted a doubling of the value of government subsidies for the purchase of electric cars, which would amount to 6000 euros per car.

The stimulus plan is added to the massive plan of one thousand billion euros approved in March at the height of the pandemic, noting companies and loans guaranteed in billions of euros.

While the unemployment rate in Germany continued to rise in May, registering 6.3%, which prompted companies to submit more than 11 million applications to benefit from partial unemployment benefits for their employees as of In March, the government again decided to confirm its support for companies facing difficulties.

Merkel said, in defense of this aid, that she shows how (the economy) as a whole is fragile and how much it is necessary to successfully motivate him to protect jobs.