The new package was first settled by Social Democrats (SPD), Christian Social Union (CSU) and Merkel's Christian Democratic Union (CDU), the three coalition parties of German government, on Jan. 12 night.
"The economic package is to against the global financial crisis," said Merkel. "We will make sure the measures are implemented as soon as possible."
The aim of the package is to help German economy withstand the current crisis and become stronger after it, she said.
The German government has to borrow more money to pay for the measures, which increase infrastructure investment and lower taxes. Merkel said increasing new borrowing was her "most difficult domestic political decision" ever made. She promised to set up a mechanism to ensure the repayments.
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