|
Chancellor Friedrich Merz's Cabinet approved the so-called
growth booster program, which must still be passed by lawmakers.
Its central component is a hefty tax write-off on investments in
machinery and other equipment over the next three years,
followed by a gradual reduction of the corporate tax rate from
15% to 10% between 2028 and 2032.
There will also be tax breaks over the next 2˝ years for
companies that buy electric cars and measures to encourage
investment in research.
Finance Minister Lars Klingbeil, who is also the vice
chancellor, said that “we are making Germany as a location more
competitive internationally.” Germany has Europe's biggest
economy.
Several industry associations have already called for more help,
for example, in bringing down electricity prices.
The package launched Wednesday is separate from a 500
billion-euro ($570 billion) fund that Merz's coalition pushed
through parliament before it even took office last month to pour
money into Germany’s creaking infrastructure over the next 12
years.
Klingbeil said that the government plans to launch legislation
formally setting up that fund in late June.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
