Jan 12 (Reuters) - 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.
Following are some details of stimulus packages announced by European governments to help weather the financial crisis:
* EUROPEAN UNION -- The European Commission first made proposals on Nov. 26 for an EU-wide fiscal stimulus package worth 200 billion euros.
-- The package amounted to 1.5 percent of the bloc’s gross domestic product (GDP) and is to be made up of 1.2 percentage points of budget spending and 0.3 percentage points of central EU funding.
* FRANCE -- France unveiled a 26 billion euro stimulus package, equivalent to 1.3 percent of gross domestic product. President Nicolas Sarkozy said on Dec. 31, France was ready to pump more aid into the economy on top of this amount.
-- The French economy minister said the plan should create 80,000-110,000 new jobs, making up for the expected disappearance of some 90,000 jobs due to the crisis.
-- The stimulus plan earmarks 10.5 billion euros for infrastructure, research and support for local authorities.
* GERMANY -- Germany’s coalition leaders meet to try and agree on the outline of a second stimulus package worth 50 billion euros ($66.96 billion) over two years.
-- Germany’s lower house of parliament has already passed a package of measures worth 31 billion euros, which will generate 50 billion euros of investment and new contracts over two years. Germany has said that its stimulus plan amounts to 1.3 percent of national GDP, and that it is thereby “over-fulfilling” the Commission’s plans -- although others question the figures.
-- Parliament approved a rise in government net new borrowing in 2009 to 18.5 billion euros from 10.5 billion.
* UNITED KINGDOM: -- Britain pledges to spend 500 million pounds ($754 million) to tackle rising unemployment. The pledged money is part of the 20 billion pound fiscal package announced in November.
-- Companies will get 2,500 pounds ($3,767) for new recruits taken from people who have been unemployed for more than six months.
-- Britain already announced on Nov. 24 that it would pump 20 billion pounds ($29.7 billion) into the economy to 2010 which includes tax cuts and 3 billion pounds of capital spending.
-- This amounts to about 1 percent of GDP. According to the pre-budget report it will reduce the effect of the downturn by 0.5 percentage points.
-- The plan includes a value-added tax (VAT) reduction to 15 percent from 17.5 percent, effective from Dec. 1 until the end of 2009.
* HUNGARY -- Hungary announced plans in November for a 1.4 trillion forint ($6.9 billion), two-year stimulus package to kick-start economic growth. The package does not involve new spending but regroups existing funds to assist businesses.
--680 billion forints would be allocated to provide lending guarantees primarily to SMEs and 260 billion forints will provide liquidity for lending.
--Hungary agreed in November a $25 billion rescue package with the International Monetary Fund and European Union.
* ITALY -- Italy approved a package to help families and firms hit by the global financial crisis. Prime Minister Silvio Berlusconi said the measures amounted to 80 billion euros, but economists pointed out the vast majority was a recycling of existing funds.
-- The measures included a temporary freeze on regulated energy prices and road tolls, 2.4 billion euros in tax breaks for poorer families.
* NETHERLANDS -- The government announced a “liquidity impulse” of about 6 billion euros, including allowing companies to write down investments earlier than usual.
* NORWAY -- Norway has said it is ready to act swiftly to aid the economy after a 175 basis point rate cut in December highlighted a “serious economic situation”.
--Norway’s Prime Minister says his government will spend “significantly more” of its oil cash windfall in 2009 than in previous years to fend off recession.
--The government is expected to produce a stimulus package in early 2009.
* PORTUGAL -- Last month Portugal announced a package worth just under 2.2 billion euros to boost the economy. The package will focus on investment in schools, boosting technology and alternative energy. The finance minister said the package is expected to give a 0.7 percentage point boost to GDP in 2009.
* SPAIN -- In the last six months, Spain has announced various measures to cushion the impact of the economic slowdown and soaring unemployment including a 38 billion euro fiscal stimulus package.
-- The package includes 6 billion euros in tax cuts and 4 billion euros of liquidity to credit-strapped companies and households.
-- The government has said it will spend an extra 11 billion euros on public works and other stimulus measures to create 300,000 jobs. The plan includes 800 million euros in aid for the auto sector.
* SWEDEN -- Sweden announced a stimulus package worth 8.3 billion Swedish crowns ($1 billion) on Dec. 5, but faced criticism for a too cautious an approach. Prime Minister Fredrik Reinfeldt said the measures were far greater than the steps proposed by the EU of 1.2 percent of gdp. The package totalled almost 3 percent of GDP.
Writing by Carl Bagh and Jijo Jacob, Bangalore Editorial Reference Unit; Additional writing and editing by David Cutler;
Our Standards: The Thomson Reuters Trust Principles.