BERLIN—Germany, Europe’s largest economy, is still on course for a recession even with a new government plan to spend 65 billion euros ($64.49 billion) on shielding energy customers and businesses from soaring inflation, economists say.
The latest package brings to 95 billion euros the amount allocated to inflation-busting since the Ukraine war began in February. By contrast, the government spent 300 billion euros on propping up the economy over the two years of the pandemic.
“The third relief package does little to change the fact that Germany is likely to slide into recession in the autumn,” said Commerzbank chief economist Joerg Kraemer.
ING chief economist Carsten Brzeski agreed: “The package will probably fall short in preventing the broader economy from falling into recession.”…