German state plans €130bn economic boost

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The German government says it will provide a stimulus package worth €130bn (£116bn; $146bn) to kick-start the economy, stricken by the coronavirus pandemic.

The package, to be spread into 2021, includes a €300 payment per child for families and a six-month cut in the VAT rate, from 19% to 16%.

The government is also earmarking €7bn for hydrogen technology to help cut carbon emissions.

Anyone buying an electric vehicle will be entitled to a €6,000 government subsidy towards it – double the current subsidy.

Germany is heading for its worst recession since World War Two because of the pandemic.

The EU already has plans for more than €1 trillion in aid for Europe’s ailing economies, but there are political tensions over the huge spending plans.