Merkel Says Germany Favors Liquidity Over Classic Stimulus
Merkel Says Germany Favors Liquidity Over Classic Stimulus
(Bloomberg) --
German Chancellor Angela Merkel said her government would prioritize liquidity to ailing companies rather than classic stimulus measures in response to the coronavirus outbreak.
The German leader spoke in a closed-door meeting with lawmakers from her Christian Democratic-led bloc, according to a party official who was present. Merkel also said German authorities should cancel events that are not absolutely necessary, the official said.
Merkel’s comments come on top of statements from German officials signaling that a major stimulus package to support the economy wasn’t in the works. Parties in the government coalition on Monday agreed to expand furlough pay to companies cutting production and pledged to provide failing firms with liquidity.
Business leaders are to meet with government officials on Friday to discuss additional measures.
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To contact the reporters on this story: Arne Delfs in Berlin at adelfs@bloomberg.net;Patrick Donahue in Berlin at pdonahue1@bloomberg.net
To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, Raymond Colitt
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