IW: At least 100 billion Euros for stimulus package required

According to a study by the Institute of the German Economy (IW), government has so far spent 287.5 billion additional Euros in the Corona crisis and recorded less revenue. Nevertheless, Michael Hüther, the director of the IW, advocated that the economic stimulus package, which will be decided on Tuesday, should encompass at least 100 billion Euros. With fewer funds, no significant effects can be expected, he emphasized. However, the grants should not go beyond autumn, but should instead be limited. “If we do nothing now, we may save money in the short term, but would slide into enormous unemployment in the long term. That would be much more expensive for the state,” said Hüther.

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