This archive report was first published on 4 June 2020.
On June 3, 2020, Chancellor Angela Merkel's government unveiled a €130 billion stimulus plan to address the economic impact of the pandemic in Germany.
The plan includes a one-time payment of €300 to each child, approximately $336, and a reduced value-added tax on daily items and electricity.
Finance Minister Olaf Scholz described the package as a 'bold response' to the pandemic downturn, stating, 'We need to get out of this crisis with an oomph.'
The stimulus plan also allocates €5.3 billion for the social security system, €10 billion to support municipalities in covering housing and other costs, and €1.9 billion for cultural institutions and non-profits.
However, the plan does not include incentives for purchasing gas- or diesel-fired engines, which was a demand from Germany's powerful automakers.
The package will be financed through new borrowing, as the government had previously abandoned its adherence to a balanced budget in March 2020.
China Partially Retreats from Airline Dispute ¶
On the same day, China's civil aviation regulator announced that foreign airlines would be allowed to operate one flight per week in Chinese cities, following the Trump administration's announcement to block Chinese passenger airlines from flying into or out of the United States.
Foreign airlines that were previously barred from operating in China will be allowed to choose one Chinese city from an approved list to operate one flight each week, starting June 8.
