Economy reacts cautiously to growth initiative of the Federal Government
"Positively assessed is the planned extension of the depreciation allowance and expansion of research grants," stated BDI Chief Executive Officer Tanja Gönner. "They set reliable investment incentives and strengthen the economic location." Innovations in the area of electromobility are certainly right, but "only a hesitant signal for their further development." The announced bureaucracy cutbacks need to be implemented first.
"The decisions primarily strengthen the purchasing power of private households," Gönner continued. Businesses, however, would hardly be relieved. "The basic growth potential of the German economy will only be slightly stimulated." She also welcomed the Bundesregierung's commitment to the debt brake.
"The Growth Initiative is similar to the Growth Chance Act, just a drop on a hot stone," stated DMB CEO Marc Tenbieg. For him, this results above all in the necessity to ease the debt brake. "Money for education, infrastructure, energy, and military security are not expenses, but targeted investments in our future," he explained. "Therefore, we should also discuss whether it is still appropriate to hold on to the debt brake in its current form."
The budget proposal for 2025 was adopted by the Federal Cabinet in the morning. For the coming year, expenditures of 480.6 billion Euro and a new borrowing of 43.8 billion Euro are planned. The debt brake requirements will be narrowly met, but there are also some harsh cuts. The Bundesregierung also includes the positive effects of its Growth Initiative in the budget.
It consists of 49 individual measures, including tax improvements for companies, incentives for overtime work for employees, and the extension of measures for lower electricity prices. They are expected to increase economic growth by 0.5 percentage points in the coming year, but they must still be passed individually.
- Tanja Gönner, the BDI Chief Executive Officer, praised the Federal government's budget proposal for its expansion of research grants and extended depreciation allowance, stating they strengthen electromobility's economic location.
- In response to the Growth Initiative, DMB CEO Marc Tenbieg argued that easing the debt brake is necessary, as investments in education, infrastructure, energy, and military security are not expenses, but investments in the future.
- The Federal government's Growth Initiative, similar to the Growth Chance Act, consists of 49 individual measures aimed at stimulating economic growth, including tax improvements for companies, incentives for overtime work, and lower electricity prices.
- The Federal Association of German Industries (BDI) acknowledges that the Federal government's budget proposal for 2025 primarily strengthens private households' purchasing power, but businesses will hardly be relieved.
- The DMB CEO, Marc Tenbieg, believes the commitment to the debt brake by the Bundesregierung is necessary to discuss, suggesting it may no longer be suitable in its current form to foster economic growth and support electromobility initiatives.
