Angela Merkel trying to broker second stimulus package worth up to 100bn euros

Lawmakers from Germany's ruling coalition will try to thrash out a second stimulus package to drive an economic recovery.

Among the questions to be decided by members of the Christian Democratic Union and Social Democrats were tax breaks or funding for families, the car industry, small and medium-sized enterprises and municipalities.

According to sources cited by Bloomberg, the package could be worth €50-100bn, while Bild reported the measures would likely total €750-80bn.

The SD were said to be pushing for additional spending closer to €100bn, with Finance minister Olaf Scholz also wanting to extend the current period of so-called 'Kurzarbeit', or reduced working hours, and to increase transfers for families with children.

Scholz had also mooted a €57bn fund to help municipalities absorb the hit from falling corporate taxes.

Chancellor Angela Merkel's CDU meanwhile was keen on €25bn of bridge loans for SMEs and for payments related to children to be means-tested, so that low income families gained the most.

But the most controversial issue appeared to be economy minister Altmaier's proposal to offer bonuses for those purchasing electric vehicles or less polluting diesel cars.

Buyers would be given a €2,500 bonus per vehicle plus another €500 for fuel efficient vehicles.

Furthermore, current incentives for electric cars and hybrids would be increased by €1,500 and €750, respectively.

The lawmakers from the two parties were scheduled to meet at 1300 BST.