December 24, 2008

Reports: German stimulus package shrinks

Germany's economic stimulus package will reportedly cost about half as much as originally reported, government officials said.

Deutsche Welle reported Wednesday that sources were telling various German media outlets the plan worked out by German state officials and Chancellor Angela Merkel was worth around 25 billion euros ($35 billion) rather than the roughly 40 billion euros ($56 billion) earlier reported.

The lower figure was sought out due to European Union rules on budget deficits and the government's desire not to set an example that would lead to other European nations inflating their deficits as well.

Some of the details include funds for infrastructure projects, tax cuts and reductions in social security contributions, Deutsche Welle said.