Federal government decides to investment booster in billions of investment!
Federal government decides to investment booster in billions of investment!
Köln, Deutschland - On June 26, 2025, the signs for a decisive turn in the German economy stand. The Bundestag plans to decide on billions of tax reliefs that pursue a fundamental goal: finally get the weakening economy going again. This threatens to remain without any significant growth for the third year in a row. As reports Radio Köln, the new package of measures could counteract this lull.
The planned measures include extended depreciation options for companies, especially for machines and electric vehicles. Companies have the option of degrading their expenses for new acquisitions - this means that they can claim up to 30 % of the costs in the first few years. This regulation initially applies to the investment time window between July 1, 2025 and January 1, 2028.a comprehensive package of measures
The Federal Cabinet has decided on a draft for a tax investment foto, the aim of which is to bring Germany back on growth and strengthen competitiveness as soon as possible. According to Federal Ministry of Finance, the short-term tax changes should ensure clarity and planning security in the investment decisions of the companies.
Another measure in the draft law provides for a gradual reduction in corporation tax. This is said to decrease from existing 15 % to 10 % by 2032. This could reduce the total tax burden for companies to a little less than 25 %. In addition, the entrepreneurial investment in e-mobility is funded by special depreciation, which means that companies can set 75 % of the costs of new electric vehicles in the purchase year.
The financial effects
The total volume of the relief measures amounts to around 46 billion euros by 2029, which should help companies secure their future investments. While politics is optimistic about the legislative changes, some economic experts express additional concerns. This is how the measures described [https://www.tagesschau.de/wirtschaft/steuersenkungen-entungspaket-waldwachstum-100.html) as an important signal, but not as a final solution for the challenges of medium-sized businesses.
The uncertainties by the international situation and the conflict with the United States via tariffs, for example through the policy of US President Donald Trump, play a non-subordinate role. The tax failures of the "growth booster" are estimated to be 48 billion euros, which brings particularly enormous challenges for highly indebted municipalities.
additional investments and compensation
Further attention in the current consultations is on the financial compensation for the municipalities, which in 2025 face enormous loss of income. The federal government has guaranteed to fully take over the tax losses of the municipalities by 2029. The compensation payments are made by distributing VAT income, and in addition, 8 billion euros will be invested in educational institutions and hospitals.
The expert meiners are behavioral overall. However, the Federal Association of Wholesale, Foreign Trade, Services (BGA) calls for targeted impulses for medium -sized companies in order to improve the economic requirements in the long term. This shows that despite the legal project, the challenges of the German economy should not be underestimated. It could soon be shown whether these measures will actually bring the hoped -for upswing.
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| Ort | Köln, Deutschland |
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