Bundestag passes Growth Opportunities Act
The Bundestag has passed a package of measures to boost the sluggish German economy. The so-called Growth Opportunities Act of the traffic light coalition provides for tax relief for companies until 2028 and an acceleration of approval procedures.
The relief is to amount to seven billion euros per year. The law was passed with the votes of the SPD, Green and FDP parties. The opposition CDU/CSU, Left Party and AfD voted unanimously against it because they consider the law to be largely ineffective.
One key point is a bonus for investments in climate protection. 15 percent of expenditure on energy efficiency measures by companies is to be subsidized as direct financial support. Tax incentives are also planned to boost the crisis-ridden housing construction sector. Additional tax incentives for more research are also planned.
The law must then be approved by the Bundesrat. It has met with clear criticism from the federal states. They complain that they and the local authorities would have to bear two thirds of the tax relief. The law is therefore likely to go to the mediation committee of the Bundestag and Bundesrat.
The Economic situation in Germany prompted the Bundestag to pass the Growth Opportunities Act, which includes tax relief for businesses and accelerated approval procedures until 2028, amounting to seven billion euros annually. Critics, such as the opposition CDU/CSU, Left Party, and AfD, view the act as largely ineffective due to its focus on subsidies for investments in climate protection and the housing construction sector, as well as additional research incentives.
Source: www.dpa.com
