Tuesday, 26 September 2023
BusinessGermany launches a 32 billion fiscal stimulus plan to boost the economy...

Germany launches a 32 billion fiscal stimulus plan to boost the economy until 2028

The German Government has presented this Wednesday a package of 50 fiscal measures, with an estimated impact of 32,000 million euros, with the aim of boosting the activity of the largest European economy over the next four years, as announced by the chancellor, Olaf Scholz , and the ministers of Finance, Christian Linder, and Economy, Robert Habeck.

At the conclusion of a two-day meeting held by the Council of Ministers in the Meseberg castle, on the outskirts of Berlin, the three representatives of the coalition government have presented a plan of ten points and fifty measures aimed at improving the growth and competitiveness of companies in Germany and offer tax incentives for investments in climate-friendly technologies.

“We are on track,” said Chancellor Olaf Scholz at the final press conference, shared with his finance and economy ministers, in which he recognized that Germany is in a situation in which growth “is not as strong as we’d like it to be.”

“That is why we want to contribute to greater growth with these measures and we encourage companies to invest now to make this possible,” he added, noting that the measures contemplate around €7 billion for economic growth and €2.3 billion in savings from easing bureaucratic requirements.

the ten laws

Thus, the announced package of measures is structured around ten points: Growth Opportunities Law; Future Financing Law; Climate and Transformation Fund; Accelerate planning and approval processes; Reduce bureaucracy; Guarantee safe and affordable energy; Advance in digitization; Skilled workers for Germany; Promote the future; Commercial agenda and supply of basic products.

“The Growth Opportunities Act represents an important element to fully exploit the recovery potential of our economy,” said Finance Minister Christian Lindner. “We have to give impetus to take advantage of the forces that exist in the economy,” he added.

Likewise, a central element is the introduction of an investment bond to promote the transformation of the German economy. Specific, the federal government will subsidize 15% of the expenses of companies in energy efficiency measures as direct financial support.

On the other hand, a modernization of the tax legislation will be undertaken to make it simpler and more modern, including the introduction of a legal regulation for the mandatory use of electronic invoices between national companies.

The set of laws presented by the coalition government this Wednesday must still be voted on by the upper and lower houses of the German Parliament, the Bundestag and the Bundesrat.

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