(Bloomberg) -- Chancellor Angela Merkel’s government is weighing as much as 50 billion euros ($61 billion) in additional debt spending to fight the fallout from the coronavirus crisis.
Germany’s coronavirus cabinet on Monday is discussing the financing for Covid-19 tests and other measures to support Europe’s largest economy. The funding -- equivalent to about 1.5% of German gross domestic product -- reflects an initial estimate, and it’s still unclear if the money will be needed in the end, according to a people familiar with the discussions.
The government will likely spend aggressively next year as well. Finance Minister Olaf Scholz plans to propose a draft 2022 budget, which will call for suspending the constitutional debt brake for a third straight year, the person said.
Germany’s finance ministry declined to comment on spending plans.
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