BERLIN—Germany is beefing up its already formidable stimulus package to prop up its economy through the Covid-19 pandemic, brushing away concerns from some economists that the state is keeping insolvent businesses afloat artificially. Furlough programs, known in Europe as short-time work, allow companies to temporarily idle workers without resorting to payroll cuts. So far, the program has allowed Germany to avoid a spike in unemployment and could help businesses adjust faster to rising demand when the economy normalizes. Grants to help companies cover their fixed costs will be extended by four months until Dec. 31. That we did this [stimulus] quickly and on a large scale contributed to Germany coming through the crisis much better than many others.”

Source: Wall Street Journal August 26, 2020 11:11 UTC