Bloomberg.com: Germany - Merkel May Gain as Government Forges Second Stimulus Package - by Rainer Buergin
Germany - Merkel May Gain as Government Forges Second Stimulus Package - by Rainer Buergin
Chancellor Angela Merkel stands to reap the political dividends in an election year of a second stimulus plan of as much as 50 billion euros ($67 billion) to be hammered out today by German coalition leaders, analysts said. “The bottom line is that Merkel will benefit the most,” Manfred Guellner, managing director of polling company Forsa in Berlin, said in an interview. “Merkel is very cleverly giving people the feeling she’s helping them, not companies.” Merkel’s Christian Democrats and their Bavarian sister party, the Christian Social Union, agreed on a 10-point plan Jan. 10 they will take into today’s talks. It includes tax cuts, infrastructure investment, lower social-insurance contributions and aid for the car industry. The two parties also drew up plans for a “Germany Fund” of 100 billion euros to help companies get access to loans.
