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EUR 130 bn stimulus to support growth after COVID-19 shock

June 4, 2020
Region:
The coalition committee agreed on a so-called “Fiscal Stimulus and Crisis Management Programme”. The overarching goal of the programme is to boost the economy, secure employment, unleash Germany’s economic potential, mitigate the adverse economic and social consequences due to the crisis, strengthen the federal states and municipalities and, finally, give financial support to families. The promised rise in “future investment” is per se a good thing to boost the economy. Still, timely implementation could be an issue. Hence, these additional investments will help raising Germany’s growth potential but are unlikely to have any meaningful effects on economic growth in the short run. [more]

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110 Documents
June 10, 2021
Region:
8
Q2 GDP should be o.k., despite April’s little stumble. Strong external demand and depleted finished goods inventories suggest a strong bounce back once current supply constraints ease. [more]
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