Germany agrees more measures to shield workers, companies from coronavirus impact

Germany's coalition parties agreed further measures to shield workers and companies from the impact of the coronavirus pandemic, a document showed on Thursday.

The aid package includes higher state transfers for people in short-time work schemes, with the government covering up to 80% of the lost net income, according to the document agreed by senior members of Chancellor Angela Merkel's ruling coalition.

The parties agreed to temporarily lower the tax burden for the catering industry through a reduced VAT rate of 7% and to give tax relief for small companies by simplifying loss carry forward.