The German government is considering setting up a bailout fund of around 500 billion euros (536 billion dollars) for companies struggling to survive the economic fallout of the coronavirus pandemic, sources said on Friday.

The emergency measures could include state participation in bailed-out entities.

The government is still in the early stages of establishing such a fund, with key points still to be hammered out, the sources said.

Economy Minister Peter Altmaier said the crisis could lead to state takeovers of struggling companies.

“There must be no taboos here. Temporary and time-limited state aid, including participations and takeovers, must be possible,” he said.

Germany is under pressure to act amid the growing likelihood that Europe’s largest economy will slide into recession this year.

Sources said on Friday that the government is planning to enact emergency regulation to lift a cap on debt and allow significantly more spending for the crisis response.

Last week, the government promised businesses in the country an unlimited line of credit to offset the effects of the pandemic. (dpa/NAN)