🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Merkel again rules out 3rd German stimulus package

Published 05/01/2009, 10:25 AM
Updated 05/01/2009, 10:48 AM
TTEF
-

BERLIN, May 1 (Reuters) - Chancellor Angela Merkel said Germany does not need to launch a third economic stimulus package, arguing in a newspaper interview to be published on Saturday that it would be counter-productive at this point.

Merkel told the Hanover-based Neue Presse that it was important to let the government's first two stimulus packages worth a total of 81 billion euros have an impact.

She had also rejected calls for a third package last month made by labour unions and the OECD.

"We don't need a third stimulus package with a new set of measures," Merkel said. "It would be counter-productive and would once again raise new expectations. We should let the investments already agreed take effect

"With our two stimulus packages we've got enough instruments that can help master the effects of the crisis."

She said, however, the government would carefully monitor the impact of those measures already enacted.

"And wherever necessary we'll react and further develop the instruments we have," she said.

She said the government had already demonstrated its ability to act quickly by expanding the "Kurzarbeit" subsidies for short-time work schemes for idled workers retained by companies by six months to a new total of 24 months.

Also, it extended the hugely popular "cash-for-clunkers" car incentive programme that has boosted demand for new cars, raising funds available from 1.5 billion to 5 billion euros.

"These are quite different than a third stimulus package," she said.

(Writing by Erik Kirschbaum; Editing by Victoria Main)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.