Details of the larger package than expected emerged as leaders of Chancellor Angela Merkel's coalition met in Berlin to hammer out an agreement.
Volker Kauder, parliamentary leader of Ms Merkel's Christian Democratic Union, said the measures – a combination of infrastructure investment, modest tax cuts, job-supporting measures and help for business – would stretch over 2009 and 2010 and cost up to €25bn a year.
Although Germany has been criticised by her European partners for acting too slowly to counter the economic slowdown, a fiscal boost on this scale would bring its growth-boosting measures so far to about 1.5 per cent of gross domestic product, the largest such package in Europe.