Growth Opportunities Act: Financial expert criticizes restrictions and calls for more investment in climate protection.

Growth Opportunities Act: Financial expert criticizes restrictions and calls for more investment in climate protection.

According to a report by www.t-online.de, the German Chamber of Commerce and Industry (DIHK) has expressed concerns about the effectiveness of Finance Minister Christian Lindner's Growth Opportunities Act. The law is intended to relieve the German economy of an average of seven billion euros per year through tax changes and reductions in bureaucracy. DIHK General Manager Martin Wansleben emphasized that the law pursues the right goals and contains good measures, but some originally planned improvements in the political process have been limited.

Wansleben particularly complained that losses should be credited less to the benefit of companies when determining the tax burden. This would undermine the most important effect of the law, as it would deprive the German economy of the signal that the federal government is relying on the power of companies.

Furthermore, the DIHK is calling for an increase in the planned bonus for investments in climate protection from currently 400 million euros in order to also enable small and medium-sized companies to participate. In addition, it promotes so-called electricity partnerships in order to promote long-term electricity supply contracts between operators of renewable energy systems and electricity consumers.

The draft law provides for numerous tax policy measures to stimulate the economy, in particular a premium for investments in climate protection and tax incentives to promote housing construction. However, the Federal Council and the German Association of Cities have already expressed concerns because they are expected to bear a large part of the shortfall in tax revenue. The municipalities fear tax losses of over 9 billion euros by 2028, which could jeopardize important investments in areas such as climate protection, local public transport, digitalization and all-day care.

These concerns could lead to the Growth Opportunities Act being adjusted in the political process to broaden the measures supported and mitigate the financial impact on municipalities. This week's public hearing in the Finance Committee will provide further insight into the likely adjustments to the law.