Germany's coalition leaders meet on Monday to agree a second package of stimulus measures to help Europe's biggest economy weather what risks becoming Germany's deepest recession since World War Two.
Chancellor Angela Merkel's conservatives — comprising her Christian Democrats and Bavaria's Christian Social Union — and the Social Democrats (SPD) agree on the outline but are at odds on details. In an election year, all parties are manoeuvring for advantage.
Below are details on the plans:
AMOUNT
The coalition agrees the new package will be worth up to 50 billion euros ($66.96 billion) over two years. The government aims to fulfil the EU's stability and growth pact rules for 2009 and not exceed a budget deficit of 3 percent of gross domestic product. This may not be possible for 2010.
HELP FOR FIRMS
The parties agree they want to help businesses survive the credit crunch. Conservatives have proposed a 100 billion euro "Germany fund" to give credit guarantees to firms with problems The conservatives have not ruled out the state taking stakes in companies in extraordinary circumstances.
INVESTMENT
All parties want to boost investment in infrastructure projects and schools by about 20 billion euros over two years. They will also speed up the extension of broadband technology.
TAX
All parties say they could raise the income tax threshold by 340 euros to 8,004. Aside from that they still disagree on tax.
The conservatives want to start eliminating "cold progression", a process in which taxpayers are shifted into higher tax brackets even when real incomes have not grown because tax groupings are not adjusted for inflation. The conservatives' plans would yield 7.5 billion in tax cuts.
The SPD wants to cut the lowest income tax rate to 12 percent from 15 percent. That, together with the new tax-free threshold, amounts to 4.5 billion euros. The SPD also wants to raise the top income tax rate to 47.5 from 45 percent.
The timing of the tax measures is unclear.
CAR SECTOR
The coalition wants to help the auto sector which has been hit by a slump in demand and accounts, directly and indirectly, for close to 20 percent of German jobs. A new tax system is likely which would offer incentives for fuel-efficient cars from July 1. There may also be extra bonuses for trading in older cars.
OTHER MEASURES
To avoid redundancies, the Federal Labour Office could pay half the social contributions for workers on short time.
Cuts in health insurance contributions are likely and the SPD wants to pay parents a one-off 200 euro child bonus.
