Growth booster from the federal government: A new hope for Germany?

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Find out how investments as a growth booster from the federal government can contribute to economic stability in 2025.

Growth booster from the federal government: A new hope for Germany?

On June 20, 2025, the focus will be on political and economic developments in Germany. The federal government has unveiled the growth booster, a package of measures aimed at stimulating the stagnating economy. How Mirror reports, small and medium-sized companies in particular are to be supported through tax relief and investments in infrastructure.

The catalog of measures is seen as crucial because it is presented at a time when economic conditions are tense. Experts see positive impulses that could particularly benefit the craft and service sectors.

Economic impact and international context

However, the time in which this growth booster will be implemented also falls in a critical geopolitical situation. Since Hamas' coordinated attack on Israel on October 7, 2023, many countries have faced foreign policy and security challenges. ZDF reports on the devastating consequences of this conflict, in which thousands of civilians lost their lives and many more people were taken hostage.

Israeli Prime Minister Benjamin Netanyahu subsequently supported the military operations to combat Hamas. Two million people are now on the run in Gaza, and the number of deaths is reaching worrying levels. At the same time, the war is also accompanied by protests within Israel, which mobilize both opponents and supporters of the government's course.

International support and reactions

International support for Israel is mixed. While the USA and Germany are on Israel's side, other countries are becoming increasingly critical of the conduct of the war. The debate about the proportionality of the Israeli attacks and the international legal situation is becoming more intense. Critics point out that Israel is not adequately securing supplies for the civilian population.

Almost a year after the attack, the role of neighboring Arab states that support the Palestinians but do not address Hamas' crimes is being examined. Iran's involvement with Hamas and other regional conflicts also remains a central topic in political discussions.

In the current situation, both the federal government and the international community are facing major challenges. On the one hand, Germany is trying to give its own economy a boost by boosting growth, while on the other hand, the geopolitical tensions and their impact on security and stability in the region cannot be ignored.