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UPDATE: German Cabinet Approves 2010 Stimulus Plan - Source

(Adds details.)

By Patrick McGroarty

Of DOW JONES NEWSWIRES

BERLIN -(Dow Jones)- German Chancellor Angela Merkel's cabinet Monday approved economic stimulus measures for 2010 worth some EUR8.4 billion, said a person familiar with the government's action.

The package of rapid economic stimulus measures designed by the center-right parties in Germany's new governing coalition include higher child benefits and changes to company and inheritance tax systems.

Under the plan, a monthly state-funded allowance for families will grow by EUR20 for each child and the tax-exempt total will be increased to EUR7,008 next year.

On inheritance taxation, the burden for siblings and their children will be lowered and rules will be changed to make the transfer of businesses more " crisis-proof."

The plan still needs approval from both houses of parliament, in fast-tracked votes scheduled for next month.

The government has previously implemented around EUR80 billion in fiscal stimulus measures.

-By Patrick McGroarty Dow Jones Newswires; 49-30-288-8410; patrick.mcgroarty@ dowjones.com

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