Germany Ups Funding for Economic Growth

The cabinet’s decision encompasses nearly 50 measures in various areas aimed at strengthening Germany as a business location and making the country more competitive economically. It promises a “series of measures” aimed at stimulating private investment, specifically mentioning digitalization and the transition to climate neutrality as priorities. Those measures include:

• increased opportunities for tax write-offs for investments
• expanded support for R&D
• low-interest credit from the German economic development bank the KfW
• enhances financing options for “young, dynamic companies.”

The ministry identified as some of its priorities aerospace, digitalization, support for regional German economies and the advancement of Germany as a global business location, among other things through the country’s international business promotion agency, Germany Trade & Invest.

“We’re making a statement in terms of energetic reduction of bureaucracy, strong incentives to work to combat shortages of skilled labor and investment incentives,” said Minister Robert Habeck in a statement. “We’re also continuing the renewables success story. The package can provide a powerful impetus for growth.”

“The news coming from the cabinet further underscores Germany’s commitment to internationalizing the German economy and attracting international businesses to the country,” says Germany Trade & Invest CEO Robert Hermann. “Companies that set up shop here can expect a warm welcome and excellent prospects for success.”