BERLIN, GERMANY - FEBRUARY 07: German Chancellor Angela Merkel in the course of a special faction meeting, on February 07, 2018 in Berlin, Germany.

Germany is about to unveil new measures to mitigate the economic impact of the coronavirus, in what analysts are describing as a "game changer" for a country that's the leader of fiscal prudency.

The fiscal stimulus comes at a time when Italy is tightening its lockdown after the death toll from the coronavirus surpassed 5,000, and Spain decided to extend its emergency state until April 11. Europe has been the epicenter of the coronavirus since mid-March, with more new confirmed cases than anywhere else in the world.

"The German plan is another game-changer," Frederik Ducrozet, senior economist at Pictet Wealth Management, said in an email over the weekend.

Germany is planning to increase borrowing by as much as 150 billion euros ($160 billion) this year as well as to pass a 156 billion euro ($167 billion) supplementary budget. The government led by Chancellor Angela Merkel is also setting up a 500-billion-euro bailout fund to take stakes in critical industries, according to various media reports.

At a government meeting on Monday, Berlin is expected to halt its debt brake rule – a law that basically prohibits Germany from presenting structural deficits.

"The government measures to limit the outbreak of Covid-19 have put the (German) economy into an induced coma," Carsten Brzeski, chief economist at ING Germany, said Monday via email.

"With a fiscal big bang, the government tries its own 'whatever it takes' to keep the patient alive," he added.

As of Monday morning, Germany had 24,873 confirmed cases of coronavirus and 94 deaths, according to data from Johns Hopkins University.

Merkel, who has been in power since 2005, is in quarantine since the weekend after being in contact with her doctor who was later diagnosed with coronavirus.