German economic recovery only in early stages

Bloomberg

Germany’s economy continues to recover following the easing of coronavirus-related restrictions, but remains well below capacity, according to a government report.
“The economic recovery is still at the beginning,” the economy ministry said Monday. “Capacities are still clearly under-used.”
While the recovery began in May, the second quarter will still show negative growth.
“Only in the third quarter will gross domestic product register positive rates again,” the ministry said in a statement.
Chancellor Angela Merkel’s administration has launched a 130-billion euro ($147 billion) stimulus plan that includes tax incentives, aid for childcare and municipal governments as well as spending on cleaner energy and digitalisation, to help pull the country out of its worst recession since the end of World War II. Short-term initiatives include a temporary cut in value-added tax and a cash bonus for parents of 300 euros per child.
According to preliminary figures from the labour ministry, some 6 million workers were enrolled in the government’s short-term employment program in May, down from 6.8 million a month earlier.
Germany’s economy is projected to contract by more than 6% this year due to the fallout from the coronavirus crisis.

Germany could take more stakes in companies
Germany could take more stakes in companies if they’re threatened by the coronavirus pandemic or there’s strategic rationale, Economy Minister Peter Altmaier told Germany newspaper Frankfurter Allgemeine Zeitung in an interview.
Government stakes “should be the absolute exception,” but there are about a dozen current cases where it could happen, Altmaier told the newspaper.
The German government last month finalised a package that gave it a 20% stake in German national carrier Deutsche Lufthansa AG. The carrier will cut 20% of its managerial positions in order to repay the debt, it said in a statement last week.
The government also bought a stake in CureVac AG, which is working on a coronavirus vaccine, in order to protect the company from a foreign takeover. Other deals made in the national interest are also thinkable, Altmaier said in the interview.