German Gov't Approves Multi-Billion Euro Fund Relief

The German government has approved a multibillion-euro state fund for the victims of this year's flood disaster, Deutsche Presse-Agentur (dpa) reported.

Photo Insert: Flood damage at the corner of Rathausstrasse/Potthofstrasse in Hagen.

A total of about 30 billion euros ($35.2 billion) is to be given for the reconstruction of homes, businesses, roads, bridges, and railways. A total of 16 billion euros of this is to be paid this year.

The package was approved by the Cabinet on Wednesday. The coalition partners - the conservative CDU/CSU and center-left SPD - will now submit the measures to parliament for approval.

According to the draft, reconstruction aid for private households and businesses will be provided "insofar as the damage is not covered by insurance or other third parties."

Property owners whose homes were damaged by the floods are to be reimbursed with 80 percent of the costs necessary to restore the buildings.

Payments of 100 percent of the costs could also be made in cases of hardship. The federal and state governments plan to participate jointly in the fund, while the federal government bears sole responsibility for the cost of restoring federal infrastructure amounting to 2 billion euros.

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