Faced with growing concerns about a wider 2.0 wave of the coronavirus (COVID-19), Germany has announced an extension of its relief program to tackle the pandemic. Bloomberg is relying on the anonymous Social Democratic Party (SPD) official to confirm the same. “A press release is expected later Tuesday (European time),” the news read.
The subsidies, initially scheduled for 12 months, pay off the bulk of paychecks and allow companies to keep workers during an economic shock.
Germany used the compensation program to avoid the mass Fires before, helping the country weather the financial crisis in 2008 and 2009. There were an estimated 5.6 million people receiving benefits in July, up from 7 million people in May, according to the Ifo Economic Research Institute based in Munich.
The expanded benefits were part of a huge spending package aimed at helping the country emerge from the world’s worst crisis. after the war era, and the extension indicates that a rebound may take longer than initially expected.
While this is good news for EUR / USD traders, the quote is paying some attention to the update as it moves up to 1.1835 early Wednesday morning in Asia.