The group swiftly agrees on economic aid plans - Rapidly determining job cuts for the nation's economic stability
German Coalition Commits to Swift Economic Relief Measures
Berlin - The recently formed coalition government in Germany is set to expedite decisions on economic relief measures, according to Federal Chancellor Friedrich Merz (CDU). Speaking after a meeting of the coalition committee, Merz said initial decisions are targeted for completion by the summer holidays, with a focus on fostering investment and reducing bureaucratic hurdles.
In a bid to stimulate economic growth, the government is mulling over public investments totaling approximately €110 billion for 2025, focusing on infrastructure and defense. Additionally, the coalition agreement stipulates tax reforms aimed at boosting Germany's competitive standing through reduced taxes. The government also plans to extend electricity price compensation until 2030 and lower electricity tax to the EU minimum to support businesses and households.
Special relief for energy-intensive companies is also on the horizon to ensure their competitiveness, while the government is considering abolishing the Lieferkettensicherungsgesetz (LkSG) to alleviate regulatory burdens on businesses. Comprehensive structural reforms are planned to enhance the efficiency of the state and economic operations.
Chancellor Merz has proposed an ambitious 100-day program to rekindle economic optimism and achieve key objectives. In addition, the government aims to strengthen coordination across EU policy areas, which includes seamlessly transposing EU directives into German law without undue burden.
The relief measures are part of a broader strategy to stimulate growth, minimize regulatory obstacles, and ensure competitiveness while prioritizing social balance and environmental goals. The coalition committee emphasized the urgency of addressing the economic challenges faced by the nation and expressed optimism about the swift progress of the relief measures.
The coalition policy includes tax reforms and vocational training programs to boost Germany's business competitiveness and contribute to economic growth, as per the coalition agreement. The government is also considering finance measures such as extending electricity price compensation and lowering electricity tax to support businesses and households. These decisions are part of the shared commitment toward swift economic relief measures announced by the newly formed government, with Chancellor Friedrich Merz leading the initiative.
