Germany’s parliament approved a record breaking stimulus package of 50 billion Euros on Friday in order to lift the economy out of its worst recession since World War II.

The 50 billion euro ($63 billion) was patched up after the 31 billion euro effort last year received harsh criticism at home and abroad as being unsufficient.

The stimulus plan includes infrastructure investments, tax reliefs, reductions in health care contributions as well as money for families with children. It also provide 2,500 euros to people who scrap their old car for a new one.

“Germany will emerge stronger out of this crisis than it was when it entered it,” Merkel told reporters in Berlin.

Germany, Europe’s second largest economy, had fallen into recession in the third quarter of 2008. The decline in demand for Germany’s exports due to the ongoing global economic slowdown has severely affected the country’s economy, which accounts for almost a third of the total euro-zone output. The economy is expected to contract by over 2 per cent this year, the worst performance since World War II.

Image by willpalmer under Creative Commons.

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