Black-red puts immediate program to strengthen the economy into effect!

Black-red puts immediate program to strengthen the economy into effect!

On May 30, 2025, after the first meeting of the coalition committee, the black-red federal government presented a comprehensive “immediate program” to strengthen the German economy. The aim is to make visible progress and improve the country's economic situation by the middle of the year. However, the measures that should be implemented as a priority currently do not have precise implementation dates.

The program places a clear focus on simplifying investments in order to make them faster and less bureaucratic. Revisions to planning, construction, environmental, procurement and procedural law will be introduced by summer. This includes, among other things, procurement for the Bundeswehr, the expansion of renewable energies, certifications with notaries and fertilizer regulations in agriculture. The reduction in bureaucracy could lead to annual relief of up to 26 billion euros, which is considered an essential part of the planned reforms. This reports upday.

Focus on reducing bureaucracy and tax relief

The key points of the immediate program are, above all, tax relief and an acceleration of the approval process. Business representatives were positive about the pace of the coalition government, as Germany is currently in an economic downturn, with expectations of gross domestic product stagnation this year. Due to international location disadvantages such as high energy costs, long approval procedures and rising social security contributions, a quick reaction is required, as information from Time emerges.

Under the motto “State capable of acting”, the federal government aims to integrate ecological and social aspects. Measures to reduce energy costs, reduce taxes for households and companies and reduce bureaucratic hurdles are also projects included in the implementation plan.

Planned measures and reforms

The list of planned measures includes, among other things, a reduction in VAT on food in restaurants, tax incentives for electric cars, more flexible working hours and a reduction in electricity tax. Social projects are also being planned that will create incentives for more collective agreements and include an extension of the rent cap. A major pension reform, including a mother's pension and securing the pension level at 48% of average income, has also been announced.

In addition, the aim is to introduce a commission to reform electoral law, combined with changes to combat undeclared work and an expansion of the police's powers. A faster shooting of wolves to protect grazing animals is also part of the considerations. The first decisions on these projects should be made by the summer holidays, with the first laws coming into force by July.

Chancellor Friedrich Merz (CDU) and Vice Chancellor Lars Klingbeil (SPD) emphasize the need for quick action. The black-red coalition sees itself as a “coalition of enablers” and is pushing for the rapid implementation of the various reforms to stimulate the German economy and overcome the current challenges.