Germany's government approved on Wednesday an anti-recession package that supporters predict will boost investment and consumption by 50 billion euros (63 billion euros) and secure up to 1 million jobs over the next two years, reported dpa.
But the various measures, expected to load another 12 billion euros onto the federal budget, still face scrutiny in the two parties making up Chancellor Angela Merkel's coalition government.
In a bid to revive flagging domestic sales of cars, the plans include a year or two of relief from vehicle tax on brand-new cars.
Berlin is also to make grants to local authorities in poor regions, subsidize home insulation and step up roadbuilding.
Business hopes to gain from more favourable tax treatment of investment goods. Earlier this week the package had been costed at 15 billion euros, but finance officials said the loss in tax revenue would be more moderate than first thought.
Officials said that together with economic boosts decided last month, the government was now devoting 32 billion euros to warding off recession.
The aid to the car industry was costed at 1.4 billion euros, and takes the form of tax relief for one year on all new cars and two years on cars that have especially low emissions of gases that cause global warming. Vehicle tax is an annual tax charge per vehicle.
Merkel was set to meet Wednesday afternoon with business and trade union leaders to seek public support for the package, which still faces sniping from some in her own Christian Democratic parties (CDU/CSU) and in the other coalition party, the Social Democrats.
The government predicts Germany's economy will stagnate next year.
Finance Minister Peer Steinbrueck said action was vital to counter that weakness.
Economics Minister Michael Glos said the package would help stop the global financial crisis springing across to the trade economy.
Noting that one sixth of German jobs were connected to the automotive industry, he said the vehicle-tax provisions would help carmakers clear their inventories.