US EditionGermany’s new government launches a program to encourage investment and boost the economy
- On Wednesday, May 14, 2025, Germany's new government unveiled a program in Berlin that includes tax relief measures and initiatives designed to stimulate economic growth.
- The program responds to a shrinking economy over the past two years and aims to reverse stagnation expected this year, though some details must still pass lawmakers.
- Key measures include a gradual corporate tax cut from 15% to 10% between 2028 and 2032, hefty tax write-offs on machinery investments for three years, and tax breaks for electric car purchases over 2.5 years.
- Finance Minister Lars Klingbeil emphasized the government's efforts to enhance Germany's global competitiveness by encouraging investment and stimulating economic growth.
- The package is separate from a $570 billion fund for infrastructure over 12 years, indicating a broad governmental push to strengthen Germany's largest economy.
27 Articles
27 Articles
The German economy has in principle welcomed the recent decisions of the coalition committee of Union and SPD.
Associated Press News
Germany's new government launches a program to encourage investment and boost the economy
Germany’s new government has launched a package of tax breaks and eventual tax cuts for companies. It is moving to encourage investment as it tries to give new momentum to an economy that has shrunk for the past two years and is expected to stagnate this year.
Bringing the lame German economy back in motion is one of the main objectives of the new federal government. The vice chancellor presents new plans for this – and a special "booster".
The buzzword is an important instrument of current politics. With it the politicians sell ideas as new, which are old. So today working groups no longer like that, but rather they are called expert round, summit or even better: "Task Force". That doesn't sound as pupsy as working group, but stinks just as badly. Only at some point the politics run out of ideas for new keywords. Then they have to resort to old ones. And in this sense, an old buzz…
With the joint initiative of CDU/CSU and SPD "Development of a law for a tax investment immediate programme to strengthen Germany as a business location", priority measures to strengthen the location and promote investment are to be implemented. The aim is to strengthen the competitiveness of Germany as a business location and finally to overcome the German weak growth through a mix of short- and medium-term measures. This is the biggest tax ref…
The measures mainly benefit industrialists. SMEs would have preferred a faster reduction in corporate tax
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