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Germany has agreed to extend a programme for one year that supplements the wages of those affected by the coronavirus pandemic.
In addition to extending short-term labor subsidies, coalition parties also agreed to continue providing monetary assistance to small and medium-sized enterprises.
He announced Tuesday that the German economy contracted to a record 9.7% in the April-June quarter.
The revised figure of an earlier estimate of a contraction of 10.1%.
The resolution to enlarge the measures came after seven hours of talks between the politicians of the conservative Christian Democracy (CDU) and their partners of the centre-left coalition, the Social Democrats (SPD).
Subsidies for part-time paints were due to expire in March 2021, but have been extended until the end of next year.
They work by allowing employers to reduce employees’ paint hours while keeping them in paints. The state is helping to cushion the economic shock of the affected painters.
This regime, known in German as Kurzarbeit, helped restrict the rise in unemployment following the 2008-09 currency crisis.
Transitional aid to small and medium-sized enterprises will end this month, but will now last until the end of this year.
How do economies cope with recession?
Finance Minister Olaf Scholz told German television that extensions could charge up to 10 billion euros (9 billion pounds).
Other countries face demanding situations in realizing the responsibility of managing the coronavirus crisis, but some have opted for other approaches.
In the UK, Chancellor Rishi Sunak has insisted that the employment retention programme opposing coronavirus, which allows corporations to put their employees on leave without firing them, will not be extended.
The program, which charges 6.9 billion pounds to run in July, is being completed before closing in late October.
Under this program, get 80% of your wages paid through the government – up to 2,500 euros consistent with the month.
But starting earlier this month, corporations must start contributing to the plan by paying employees’ social and pension contributions.