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Germany’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.
33 Articles
33 Articles
It is a recurrent and unpopular debate, which resurrects especially in times of crisis like the present, with the economy stagnating after two years of recession and an aging population that stagnates Germany’s robust social state. But are the Germans vague, as Chancellor Friedrich Merz recently said? Or is this feeling just the product of a social structure and of wrong fiscal incentives?Continue reading
Marie-Christine Ostermann, President "The family entrepreneurs" talks about the necessary structural reforms in Germany at WELT TV. The measures of the government go in the right direction. "Our members give the new government an advance of confidence.
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.
The new German government has presented this week a first package of measures to boost private investment. The bosses before whom it has made these announcements have expressed cautious satisfaction, fearing that they are not sufficient.
Will the Merz government make Germany's economy run like this?
All the next moves of the Merz government to revive industry and services in Germany A rapid step to support industry, a structural one to relaunch the entire economic system: it is on this double track that the German government has launched one of the most significant economic maneuvers of the last decade. On Wednesday, Finance Minister Lars Klingbeil presented an ambitious tax bill that, in parallel, is integrated with the implementation of a…
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