Germany is expected to extend its furlough scheme to 24 months.
The interesting move comes as the UK scheme starts to wind down and is currently due to end in October.
Angela Merkel's spokesperson said on Monday she was “positively” inclined towards the suggestion to extend the scheme, which allows firms to put their staff on part-time work to reduce their cost.
The UK's furlough scheme initially only allowed staff to be sent home and not work, but staff have been allowed to work part-time since July.
Germany's finance minister Olaf Scholz said on Sunday: "The coronavirus crisis won’t suddenly disappear in the next few weeks.
“Businesses and employees need a clear signal from the government: we’ve got your back for the long haul in this crisis, so that no one is being let go without need.”
A final decision on the fate of the scheme will be taken on August 25.
The UK's furlough scheme, which pays 80 per cent of furloughed workers' wages up to £2,500 per month, has begun to wind down.
From August, companies have been expected to pay furloughed staffs' pension and national insurance contributions before taking on 10 per cent of wages in September and 20 per cent in October.
The scheme will then close in October. There has however been pressure from opposition parties for the scheme to be extended in some way at the end of October, to avoid mass job losses which are feared.
Labour's Shadow Chancellor Anneliese Dodds said: “The chancellor’s refusal to abandon his one-size-fits-all withdrawal of furlough is a historic mistake that risks a python-like squeeze on jobs in the worst-hit sectors.
"The reward for months of hard work and sacrifice by the British people cannot be a P45.”
