The German government’s second fiscal stimulus could reach €50bn ($68bn, £47bn), nearly double the amount expected just a week ago, senior officials said on Monday, as leaders of Chancellor Angela Merkel’s coalition met in Berlin to hammer out an agreement on the package.

Volker Kauder, parliamentary leader of Ms Merkel’s Christian Democratic Union, said measures – a combination of infrastructure investments, modest tax cuts, job-supporting measures and help for business – would stretch over 2009 and 2010 and cost up to €25bn a year.