Habeck proposes debt-financed special funds for companies. Opposition criticizes the proposal.

Habeck proposes debt-financed special funds for companies. Opposition criticizes the proposal.

According to a report by www.n-tv.de,

In the debate about the budget of the Ministry of Economic Affairs, Federal Economics Minister Robert Habeck presented the Union with a proposal for a debt-financed aid program. He proposes a special fund that should benefit companies. This special fund could finance tax breaks and tax depreciation options for companies. Overall, it is intended to be a program that is intended to solve the structural problems in the economy.

According to Habeck, this special fund could have a volume 50 times the size of the current Economic Opportunities Act, which is worth around 32 billion euros and is intended to support companies with investments. However, in order to implement the special fund, a change to the Basic Law would have to be made, which not only the traffic light parties but also the CDU and CSU in the Bundestag and Bundesrat would have to agree to.

Julia Klöckner, the economic policy spokeswoman for the CDU/CSU parliamentary group, assessed Robert Habeck's balance sheet negatively and claimed that his policies had failed. This criticism refers to the negative economic developments that Germany has recently experienced and accuses Habeck of his approach leading to a dead end.

In view of the debate and the possible implementation of a special fund for companies, consequences for the market and the financial sector are foreseeable. A change in the constitution to implement such assets would significantly change economic conditions in Germany and could lead to shifts in investments and corporate strategies. In addition, the introduction of tax breaks and tax depreciation options could have an impact on companies' budgets and thus influence their operational performance.