As COVID-19 rages, German government announces supplementary budget of US$173.2 billion for economic relief
On March 21, 2020, the German government announced a supplementary budget for 2020 including a rescue package for German companies, amounting to €156 billion (US$173.2 billion) to mitigate the consequences of the COVID-19 crisis.
Germany's debt limit usually allows a maximum of 0.35% of the gross domestic product in new debt, currently amounting to approximately €12 billion (US$13.3 billion). However, in times of crisis, exceptions apply; German Finance Minister Olaf Scholz stated that Germany would need to exceed the debt limit temporally. According to Scholz, Germany’s current low deficits of 60% of economic output enables the government to act with full political force.