Merkel prepares for a hit on the German economy


Merkel has signalled that with the coming downturn on the German economy, she is preparing  to rid of Berlins long standing balanced budget policy. The scrapping of such budget policy comes as they rush to try to buffer themselves against any economic downturn due to the  coronavirus. Coronavirus is looked upon as an exceptional circumstance which means they can apply the brake. 
This comes as the German economy in recent months has been on the brink of recession, this possible recession was blamed on Brexit and Global trade tensions.

Merkel till now has pushed back against calls from Washington and the European Central Bank to side step the budget policy and to help pull back the German economy from recession. 
The German government has come out stating they will do “whatever is necessary“ to combat any downfall triggered by the Coronavirus. 
“We will not ask ourselves every day, what this means for our deficit. 
This is an extraordinary situation,” said Merkel. 
Even thought Germany hasn’t been hit as hard as Spain or Italy, it has entered into crisis mode meaning historic sites like Reichstag dome have been banned from visiting public with pro football matches to be played behind closed doors. 
Last night ECB’s Christine Lagarde warned of a “major shock” to the economy triggered by coronavirus.
She said: “An ambitious and coordinated fiscal policy response is required to support businesses and workers at risk.”


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