Voucher plan could be worth €500 to Germans

GERMANS are in line to receive €500 (£423) "consumption vouchers" to be spent across the country, as the government considers the scheme to stimulate its economy.

Financial daily Handelsblatt reported that the vouchers will be posted out next year if the current raft of measures to boost a financial system mired deep in recession do not work.

"If the measures that have been decided aren't enough, we will support the economy with billions more," a source told the newspaper adding that there is debate over adding another €15 billion to stimulate the markets.

In the wake of the global financial crisis, the German government has cut taxes and announced infrastructure spending worth more than €32 billion.

Ministers denied the vouchers plan - but finance minister Peer Steinbrüeck said in September that talk of a German recession was "nonsense".

Yesterday, he finally admitted that the country was indeed in one. Giving Germans consumer vouchers seems a credible proposal given that Chancellor Angela Merkel ruled out British-style VAT cuts saying: "People will not spend more, they will only save more."

Germany will reportedly not finalise any voucher plan until next year.