Historic stimulus package against historic economic slump
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The federal government’s stimulus package is worth 130 billion euros. The centerpiece is the reduction in VAT. This feat was achieved primarily because the grand coalition was willing to compromise.
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In a television interview, the Chancellor shows a deep distance from the American president. Categorically, she rules out running for another term.
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Eit should actually be about the stimulus package. With a record sum of 130 billion euros, the German government wants to fight the economic crisis that is looming after the Corona measures. There is also a surprising drop in VAT. The Chancellor wants to explain these steps in early Friday evening in two television interviews. But the most telling answer from Angela Merkel then concerns foreign policy, more precisely: the relationship with Germany’s most important ally, the United States.
The editor-in-chief of ZDF, Peter Frey, wanted to know how much Donald Trump’s share in the escalation of violence in the USA from Merkel in the program “What now?” Merkel first mentioned the name of George Floyd, the African American, who was killed by police violence: “Racism is something terrible!” Society in the United States is very polarized. On the other hand, it has the “claim to politics that one tries to bring together and reconcile”.
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Trump’s political style is “a very controversial”. Racism also exists “with us”. For the United States, she hoped that “there would be enough people to advance peaceful demonstrations.” That the Chancellor was moving in the field of interstate relations, and therefore diplomacy, was already very clear. But Bettina Schausten, the deputy editor-in-chief of ZDF, asked again: “Do you still trust this American president?” Merkel took a short break and then replied: “I work with the elected presidents in the world and of course with the American one. ”So no trust.
The message got through. International correspondents spread it all over the world. Now, it hadn’t been hidden from observers before, how much Merkel cheated with Donald Trump. Just last week, she had turned down an invitation to the G-7 summit in Washington in the summer. Officially because of Corona, but it was learned in government circles that Merkel also wanted to avoid being drawn into the inner-American opinion struggle with a photo next to Trump. Trump’s one-sided invitation to Russian President Vladimir Putin for the G-7 meeting also irritated her.
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Nevertheless, Merkel’s answers on television are a message: the German chancellor is now officially recognizing the distance to the American president. Whether she had planned this clarity remains open, of course. In another interview with the ARD, recorded a little later, she did not respond nearly as sharply to a question about the USA. Unlike Frey and Schausten, however, the ARD interviewers did not follow up.
The economic stimulus program should also promote future technologies
On the actual topic of the interviews, the economic stimulus package, the Chancellor said in almost the same way in both conversations: “We have the most difficult economic situation, the worst crisis since the existence of the Federal Republic of Germany.” Over seven million people are on short-time work, it must be avoided that it would result in unemployment.
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France’s finance minister – – – – –
Merkel emphasized that the economic stimulus program should have a short-term effect on the one hand, but at the same time was oriented towards promoting future technologies, especially with regard to digitization and climate protection. Merkel rejected the accusation of also promoting “old industries”: “Citizens will decide whether to buy a bicycle, an electric car or a hybrid car. We trust people to know what they want to buy. ”E-cars and hybrid cars would receive additional funding through direct grants.
Of the 130 billion euros planned, 80 million would be spent in the next two years. This should give an incentive so that the economy starts up again. However, falling electricity costs and stable social security contributions would also be guaranteed in the long term in order to create security.
An extension of the reduction in VAT to 16 percent and 5 percent beyond the end of the year excluded Merkel. This would lead to debt that would be permanently too high for Germany.
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Historic stimulus package – – – – –
Merkel was less skeptical about the easing of corona measures in many federal states than a few weeks ago. The main thing now was to adhere to the “basic measures”: “I become restless when, for example, people think we no longer need the distance measures. We need it: 1 meter 50. And where you can’t keep it: wearing a mask is absolutely necessary. “
These measures would continue until there was a vaccine. The public health service would also be strengthened again by the stimulus package. At the moment, however, the infection process is “under control” because the health authorities can understand all infections. On the other hand, opening schools and daycare centers is “one of the hardest things there is”. Because science does not provide a reliable basis here. In both interviews, Merkel repeated her wording that the virus was a “democratic imposition”, but one had to remain vigilant. Merkel categorically excluded another term as Chancellor: “No, no. Really not! ” That is “very clear.”
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