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Germans sceptical about Berlin's economic stimulus plans

Business Materials 21 January 2009 13:06 (UTC +04:00)

The majority of Germans are sceptical that Chancellor Angela Merkel's 50-billion-euro (66-billion-dollar) stimulus package will help to shield Europe's biggest economy from the global recession, a survey released Wednesday showed.

Conducted for the weekly Stern magazine, the Forsa Institute pollsters found that 69 per cent of Germans believe that the programme agreed to last week by Merkel's ruling coalition would not help Germany to limp through the economic slowdown rapidly gaining momentum around the world, reported dpa.

On Monday, the European Commission said that the German economy would contract by 2.3 per cent this year, resulting in the country sliding into its biggest economic downturn since the end of the Second World War.

Only 26 per cent of those polled by Forsa were confident that Merkel's stimulus package, which includes public spending on infrastructure projects as well as benefits for car buyers and tax cuts, would help to shore up the country's economy.

But the poll found that 59 per cent rejected the government's plans of offering 2,500 euros (3,200 dollars) to car buyers who dispose of their old vehicles in favour of more environmentally friendly ones as not a good solution to the crisis gripping the car sector.

About three-quarters of those polled said they had no plans to take up the offer, with only 11 per cent saying they were considering making use of the incentive. dpa amc wjh

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