Germany's coalition parties met yesterday to hammer out a framework for a second stimulus package worth up to 50 billion euros to help Europe's biggest economy weather its worst recession since World War II.

The parties, including Chancellor Angela Merkel's conservatives and the Social Democrats (SPD), agree on boosting spending on infrastructure projects to save jobs but are at loggerheads over other details, including possible tax cuts.

The political stakes are high as voters will deliver their verdict in a federal election in September. A leading member of Merkel's conservatives said the package could total about 50 billion euros.