Investment booster: Entrepreneur criticizes Merz's measures as nonsense!

Investment booster: Entrepreneur criticizes Merz's measures as nonsense!

On June 29, 2025, the black-red federal government under the leadership of Friedrich Merz (CDU) launched an immediate tax investment program. This program aims to create targeted investment incentives to stimulate economic growth in Germany. The federal, state and local governments are expected to lack around 46 billion euros in tax revenue between 2025 and 2029 to finance these measures.

Entrepreneur Andreas Neyen from Potsdam expresses sharp criticism of the planned measures. He describes the program as a “window” and argues that the 30 percent depreciation on machinery and the targeted tax cuts are not enough to cover the needs of the middle class. Neyen emphasizes that the actual financial benefits for companies are not significant enough and that other location factors are much more important for economic success.

Details about the investment booster

The investment booster includes special depreciation of 30 percent for investments made between June 30, 2025 and January 1, 2028. From 2028, the corporate tax rate is to fall in five stages from the current 15 to 10 percent. These measures are intended in particular to strengthen the competitiveness of German companies and offer investment incentives. Federal Finance Minister Lars Klingbeil emphasizes that the goal is to get Germany back on track for growth. The planned short-term tax legal changes are intended to give companies more planning security.

In addition, special tax research allowances and generous depreciation for electric cars are provided. The depreciation for electric vehicles is set at 75 percent in the year of purchase, and the assessment basis for these vehicles is increased from 70,000 euros to 100,000 euros. Furthermore, the upper limit for tax research allowances will be raised from 10 million euros to 12 million euros in order to promote research and development in Germany.

Reactions from the economy

While some industry representatives are optimistic about the planned measures, there are also critical voices. The Federation of German Industries (BDI) describes the initiatives as a positive signal for the business location and announces greater planning security for companies. In contrast, the Association of the Chemical Industry (VCI) is calling for a significant reduction in consumer spending in order to further stabilize the economic situation.

The German Economic Institute (IW) welcomes the initiative and sees a move away from budgetary paralysis, but expresses concerns about unresolved problems in budget planning. It remains to be seen whether and how the new tax incentives will have their desired effects and whether the critics in the business community will ultimately revise their arguments.

For further information on the measures and their impact on the economy, the detailed reports can be found on Mercury as well as on bundesfinanzministerium.de be read.