Europe’s big two kiss and make up for pandemic rescue deal

Germany amazed the whole continent with last week's stimulus package, but it paves the way for countries such as France to agree an effective coronavirus response

From champion of austerity to Europe's biggest spender - Germany has travelled a long way in just a few months. The notoriously frugal ministry of finance has agreed to spend 130bn - a sum equal to 4% of national income - on more than 50 initiatives to promote growth across the country.

This breathtaking investment programme comes on top of the almost 30% of GDP the government has so far spent on rescuing businesses and protecting jobs during the coronavirus crisis.

Society is facing a profound upheaval, so we couldn't just offer a traditional stimulus package

The government has managed to turn a corner just in time and given up on a subsidy for combustion engines