Germany set for second economic plan worth 40 bn euros: Report

FRANKFURT: Germany is set to adopt a second economic support package worth 40 billion euros (57 billion dollars), according to a magazine.

The funds would be spent on public infrastructure improvements, especially on roads, schools and high-speed Internet access, as well as on tax cuts and decreases in health insurance costs, the magazine quoted government sources as saying.

An initial economic plan expected to cost 12 billion euros was adopted by the government a few weeks ago.
Officials added that amount to measures approved in early October to arrive at a total figure of 31 billion euros for the initial plan.

Most recently however, economic data and surveys that show the biggest European economy slipping further into recession have raised pressure on the government to announce more measures.

German companies, many of which depend on export markets, have been hammered by the global economic slowdown.
On Friday, the industrial group ThyssenKrupp said it had reached an accord with workers to trim their hours next year, a move that could affect up to 20,000 people.