The announced economic stimulus packages in different countries have different focus. Some of them concentrate more on infrastructure projects, while others provide greater support to businesses. But what matters most of all is whether the government can apply new measures to support economic growth other than money-printing. I agree with those experts who conclude that the German stimulus package is well-designed, even compared with the U.S. program. Out of €130 bln, allocated for supporting economy following a coronacrisis, immediate economy support measures, called the “Economic and crisis management package,” cost only €80 bln ($90 bln).
If we compare this size with a $2 trillion U.S. program, we can conclude that the German government took a more cautious approach to stimulus. And this is not a problem of budget scarcity or something like this. From my point of view, the reason why Germany is reluctant to provide more financial support to its enterprises is the problem of overstimulation. You cannot pump trillions of euros into an economy several times just within one decade (2008-2009 financial crisis, European debt crisis of 2010-2014, coronavirus crisis of 2020). The other part of the German stimulus, called the “Future package,” costs around €50 bln.
