2023-08-29 19:11:19
Updated Tuesday, August 29, 2023 – 19:11
The stimulus package includes tax aid worth more than 7,000 million euros
Olaf Scholz at the press conference during the German Federal Cabinet meeting in Meseberg. CLEMENS BILANEFE
The head of the German governmentOlaf Scholzannounced this Tuesday a large stimulus package that includes tax relief worth more than 7,000 million of euros per year (7,600 million dollars) until 2028, to relaunch an economy in the midst of a crisis, according to AFP.
Europe’s largest economy saw zero growth in the second quarter and could be the only major industrialized country to suffer a recession this year, according to the FMIan issue that is dominating the start of the new political course in Germany.
The fiscal stimulus package concerns small and medium-sized businesses, Scholz explained at a coalition government seminar at Meseberg castle near Berlin.
“At this juncture, it is very important that the federal government launch an offensive to stimulate the growth of our country, and guarantee that companies make their decisions (…) regarding investments,” the head of government argued before the press. german.
In this sense, his coalition government, which brings together social democrats, environmentalists and liberals, adopted a program of reactivation in 10 points.
Among them are incentives for research, and an improvement in the tax deduction applied to companies for losses suffered. Likewise, the access of young companies to the capital markets will be facilitated, with measures valued at 1 billion of euros.
Berlin is also committed to a quick adoption of a bill on skilled immigration, which is expected to alleviate the labor shortage.
German industry, the locomotive of the national economy, was hit hard by the initial spike in energy prices following the invasin rusa from ukraine.
The government coalition wants to guarantee energy companies at an affordable price, through temporary subsidies.
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