German government rejects talk of economic stimulus package

BERLIN — The German government is dismissing talk of a stimulus package for Europe's biggest economy as growth slows amid international trade tensions and one-off factors at home.

A prominent lawmaker in the governing coalition had raised the possibility of a stimulus program and the head of Germany's main industry lobby group has called for more government investment. On Wednesday, the government is widely expected to halve its growth forecast for this year from the 1% it predicted in January.

Chancellor Angela Merkel's spokesman, Steffen Seibert, said the budget already foresees increasing investment, and "we see no need for a stimulus program."

He added that the economy is "in more difficult times" but is still growing. Seibert added that the government "links solid budgets with a strengthening of investments."

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