Germany took further measures to protect its economy from this year's downturn Tuesday (August 25).

The country's coalition parties agreed to spend another 10 billion euros - or just under 12 billion dollars.

Germany's economy contracted at its fastest rate on record in the second quarter.

And, with elections due in 2021, the government is eager to fight off the worst economic effects of the virus.

Some key decisions include an extension of short-time work subsidies until the end of next year.

They had been due to expire in March.

Insolvency rules have been frozen - so struggling companies can delay filing for insolvency until the end of the year.

A short-time work scheme will also be prolonged.

Such schemes save jobs by allowing employers to reduce the employee's hours, while keeping them in work.

Finance Minister Olaf Scholz said the goal is to 'stabilize the economy'.

Germany's government has already brought in a massive stimulus package worth more than 130 billion euros this year.