Germany’s worst slump since 1990 has forced the government to find more money to kick start the economy.
In the biggest spending package since the Second World War, the German lower parliamentary chamber approved a 50 Billion euro bailout. The bill, which is set to go before the parliament’s Upper house next week, is expected to pass. Presented by Finance Minister Per Steinbruck the new measures add to a 31 billion euro plan approved last year. German industrial output has seen a record drop, with GDP contracting more than 2 percent in the last quarter of 2008. Politicians will now be hoping the plan can halt Germany’s economic downward spiral and revive demand. Manufacturing, particularly Germany’s carmakers have been badly hit, with big falls in exports. After initially resisting European pressure to act, Germany government has been forced to tackle the problem.