Germany eyes 30 billion euro plan to boost economy

BERLIN (Reuters) - Germany plans to introduce a range of steps worth up to about 30 billion euros (24 billion pounds) to boost investment in Europe's biggest economy, cabinet minister Michael Glos said on Thursday.

"We could get to about 30 billion euros with the support package," conservative Economy Minister Glos told reporters on the sidelines of an event in Berlin.

The plans, due to go to cabinet next Wednesday, will include support for the auto sector and building renovation as well as tax breaks enabling companies to write off a share of their investments, several German newspapers reported.

German business daily Handelsblatt quoted Finance Ministry spokesman Torsten Albig as saying that, in order to fund the package, Germany would have to raise around 5 billion euros of new debt in each of the next two years.

Albig later denied telling the paper the 10 billion euros would have to be raised entirely by taking on new debt, but the Handelsblatt reporter with whom he spoke stood by the quote.

The government has said it is working on the stimulus steps as fears grow that a recession is looming in Germany and that the global financial crisis will hit firms and lead to higher unemployment before next September's federal elections.

Earlier this month, the government announced a 500 billion euro bank rescue package to help restore confidence in the financial system, but Merkel and other politicians want to do what they can to help ordinary Germans.

A leading member of the Social Democrats (SPD), who share power with Chancellor Angela Merkel's conservatives, had said earlier the government was looking at a package worth up to 25 billion euros.

"Altogether we are talking about a volume of perhaps 20 billion euros to 25 billion euros," Peter Struck, parliamentary floor leader of the SPD told the Berliner Zeitung.