Immediate program: Government is throwing out bureaucracy and strengthening the economy!

Immediate program: Government is throwing out bureaucracy and strengthening the economy!

The black-red government coalition has presented a comprehensive immediate program to strengthen the German economy. The focus of the program is on tax relief and a targeted reduction in bureaucracy in order to promote the competitiveness of companies and improve structural conditions, such as Zeit.de reported.

In addition to the measures already announced, the government plans to accelerate approval processes and specifically promote high-tech industries. Chancellor Friedrich Merz (CDU) emphasizes the urgency of action. Vice Chancellor Lars Klingbeil (SPD) describes the coalition as a “coalition of enablers” that wants to quickly implement the necessary steps to strengthen the economy.

Important measures and goals

The central aspects of the program include, among other things, better tax depreciation options for companies. The aim is to promote innovation and create investment incentives without raising taxes. A reduction in income tax for small and medium incomes in the middle of the legislative period as well as a prompt reduction in electricity tax are firmly anchored in the coalition agreement. Companies and consumers will be relieved of at least five cents per kilowatt hour, reports KPMG.de.

Another goal is to implement an investment booster with a declining depreciation of 30% on equipment investments in the years 2025 to 2027. In the long term, a reduction in the corporate tax rate from 15% to 10% by 2028 is planned in five steps. These measures are intended to help keep Germany internationally competitive.

Further initiatives and planning

The laws that have already been passed include, among other things, regulations to limit migration and accelerate broadband expansion. The coalition also announced a comprehensive pension package that, among other things, secures the mother's pension and is intended to guarantee a pension level of 48% of average income.

Additional investments in the economy are to be made with a loan-financed special fund of 500 billion euros. Business representatives welcome the government's pace given the current economic downturn, with gross domestic product expected to stagnate this year.

The planned relief and incentives have met with a positive response. However, business associations express concerns as high energy costs, taxes and long approval processes continue to pose challenges to competitiveness. The government intends to make a significant contribution to easing the burden on companies through annual bureaucracy reduction laws and reducing bureaucracy costs by 25%.