Germany to launch 80 billion euro-stimulus programme for 'innovation and sustainability'

The German government's coronavirus recovery programme will likely mobilise funds of about 80 billion to 100 billion euros, Kerstin Schwenn reports in newspaper Frankfurter Allgemeine Zeitung. In a nod to calls to ensure the stimulus programme adheres to climate action principles and other sustainability conditions, Chancellor Angela Merkel said its success will be determined by "giving both innovation and sustainability a boost," the article says. Apart from financial relief for households, municipalities and businesses, the programme is said to address investments in energy infrastructure and digitalisation. A draft by the finance ministry (BMF) seen by the newspaper highlighted investments in railways and electric mobility as well as in hydrogen production and also did not rule out controversial plans for introducing a buyer's premium for new cars.

The government coalition parties of Merkel's conservative CDU/CSU alliance and the Social Democrats (SPD) are meeting on Tuesday (2 June) to iron out disputes about the programme. Depending on the consultations' success, the government might bring forward its stimulus programme as early as the next day.