Germany’s Merkel Looking to Address Looming Recession

Chancellor Angela Merkel’s government is flirting with measures to stimulate growth, reviewing its options amid evidence that Europe’s largest economy risks plunging into recession.

Among plans being discussed is lowering the mandatory pension contribution by 0.6 percentage point, which would funnel 6 billion euros ($7.6 billion) into the economy, said Michael Fuchs, deputy parliamentary leader of Merkel’s Christian Democratic Union in the lower house.  “There is some leeway for measures to help growth,” Fuchs said in a telephone interview.

Germany’s economy is losing steam as sluggish growth in the euro area and political tension with Russia weigh on demand. With next year’s target to balance the budget looming, Merkel’s coalition has resisted calls to boost spending to foster growth.

Bloomberg

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